house price reduction?

[webtax]

The point that many posters are making is that it is wise to be cautious before buying. The latest predictions are for the credit crisis to last 3 years internationally, and Ireland would already have the effects of its own housing bubble busting regardless of what is happening internationally. And prices will be a long time recovering, so there's no need for fear about missing the boat..
Quote from
"But the prevailing wisdom remains that if you hold on to your house for a long time, eventually you'll do fine. Don't count on that. Yes, markets come back, but a bubble is an irrational rise in prices, and once the balloon is pricked, it doesn't magically inflate again. For a cautionary lesson, look to Nasdaq, the stock market on which most technology companies were listed at the height of the Internet and tech boom. Even before the market crash of the last weeks, Nasdaq hadn't come anywhere close to getting back to its March 2000 top."

By all means go ahead if it is your dream home and are getting a bargain, are in secure employment and can live with a period of negative equity.

 

[eireabu]

I'm not sure I agree with the general consensus that seems to be "don't buy now". I agree that house prices are falling all the time but if a seller agrees to sell a house now at a greatly reduced price then I don't see why someone shouldn't buy now.
I personally have been looking into building/buying a house for the last 2 years. I have seen a house that I like (5-bed detached circa 2500 square feet) whose asking price was €370k 6 months ago and has just this past week been reduced to €295k.
Now, if I was able to secure this house for say €240k then I would probably buy it. I don't see any reason not to in a scenario like this.

 

[David_Dublin]

I'm not sure I agree with the general consensus that seems to be "don't buy now". I agree that house prices are falling all the time but if a seller agrees to sell a house now at a greatly reduced price then I don't see why someone shouldn't buy now.
I personally have been looking into building/buying a house for the last 2 years. I have seen a house that I like (5-bed detached circa 2500 square feet) whose asking price was €370k 6 months ago and has just this past week been reduced to €295k.
Now, if I was able to secure this house for say €240k then I would probably buy it. I don't see any reason not to in a scenario like this.

I reckon you're right. Nobody can predict the bottom of the market. When it is obvious we have hit the bottom the number of transactions is going to increase substantially, and so will the competition for the better priced houses.

If you can comfortably afford to pay it and it is the house for you give it serious consideration.

 

[David_Dublin]

The point that many posters are making is that it is wise to be cautious before buying. The latest predictions are for the credit crisis to last 3 years internationally, and Ireland would already have the effects of its own housing bubble busting regardless of what is happening internationally. And prices will be a long time recovering, so there's no need for fear about missing the boat..
Quote from
"But the prevailing wisdom remains that if you hold on to your house for a long time, eventually you'll do fine. Don't count on that. Yes, markets come back, but a bubble is an irrational rise in prices, and once the balloon is pricked, it doesn't magically inflate again. For a cautionary lesson, look to Nasdaq, the stock market on which most technology companies were listed at the height of the Internet and tech boom. Even before the market crash of the last weeks, Nasdaq hadn't come anywhere close to getting back to its March 2000 top."

By all means go ahead if it is your dream home and are getting a bargain, are in secure employment and can live with a period of negative equity.

Nasdaq cannot be compared to property market, ludicrous analogy. The only thing they have in common is that they are both markets. Nothing else is relevant for a comparison.

 

[webtax]

Nasdaq cannot be compared to property market, ludicrous analogy. The only thing they have in common is that they are both markets. Nothing else is relevant for a comparison.

???? They were both inflationary asset bubbles driven by irrational exhuberance and freely available credit and therefore relevant for comparison

 

[Senna]

I'm not sure I agree with the general consensus that seems to be "don't buy now". I agree that house prices are falling all the time but if a seller agrees to sell a house now at a greatly reduced price then I don't see why someone shouldn't buy now.
I personally have been looking into building/buying a house for the last 2 years. I have seen a house that I like (5-bed detached circa 2500 square feet) whose asking price was €370k 6 months ago and has just this past week been reduced to €295k.
Now, if I was able to secure this house for say €240k then I would probably buy it. I don't see any reason not to in a scenario like this.

OK, say you do buy it now for €240k, what could you buy it for in 6/12/24 months time? If your happy to pay a bigger mortgage for its lifetime, then best of luck to you.
There are too many outside influences effecting the property market, when the market reaches the bottom, its going to stay there for a few years. The economy is going down the toilet, unemployment is at record highs and will continue throughout next year and the investors have disappeared from the market (they purchased over 40% of property in 2006)