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Central Bank New Rules and implications for Cork Property Market

  • 21-10-2014 10:40am
    #1
    Deco99
    Registered Users Posts: 1,642 ✭✭✭


    As the title suggests. There is another thread dealing with the new rules and what it means but its very much concerned with the Dublin Market which completely seperated from the rest of the Country. What do people reckon about in Cork, Are prices likely to go up, down or level off? I dont see much opinion in any papers in relation to outside dublin so am curious as to whether I should wait until second half of next year when i could have the 20% or go now while I have 12/15 or so %

    This article suggests that prices have already gone up so does that mean there is room for a drop?
    http://www.independent.ie/irish-news/news/house-prices-rocket-by-as-much-as-30pc-in-rural-areas-30676811.html


Comments

  • #2
    Balmed Out
    Registered Users Posts: 4,713 ✭✭✭Balmed Out


    One would guess that there me be an increase in demand as people rush to avoid the new rules and a corresponding dip after that. Whether prices will be rising or falling I don't know but one would imagine they could fall a little faster or rise a little slower then they would have otherwise done.

    I wouldn't see it being a massive factor though.
    The Loan to income of new owner occupier mortgages in 2013 had 80% of them being at 3.5 times or less so that wont make a difference.
    The Loan to value on the other hand had 40% in breaching the new rules - 15% will continue to be allowed so this is where the influence will come.

    One possibility being muted is that due to the demand vs number of available mortgages breaching the rules any such mortgages may find themselves with higher interest rates.


  • #3
    Deco99
    Registered Users Posts: 1,642 ✭✭✭Deco99


    Balmed Out wrote: »
    One possibility being muted is that due to the demand vs number of available mortgages breaching the rules any such mortgages may find themselves with higher interest rates.

    I saw this discussed on the other thread, and it was said that this was unlikely as the banks were more concerned with margins as opposed to turnover, now i dont quite follow but that because of this the new rules were unlikely to impact interest rates, which are goin to go up either way

    The property market in Cork and the area is as close to being as low as it will go I wonder or is there room for a further drop?

    The supply of estates in small villages is frightening, so they wont be going up, its the commuter towns that I'd be interested in.


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