House prices going up

littleredspot

I'm a long time reader of this forum, propertypin, treesdontgrowtothesky and askaboutmoney. I have a few profitable rental properties in Dublin city center, bought as recently as December. For the last 2 years I've been trying to buy a new family home, preferably in the Malahide area. I'm looking for something rundown which I would personally extend and renovate (which is what I've done with the rentals.
I'm very aware of the prices falling all round, if I wanted a regular estate house I could save 20% from the peak and would definitely
wait another while. However what I'm looking for is in limited supply. All the houses/wrecks that we've bid on have sold for well more than the asking price, hence bucking the trend and proving some economic rule that if you have something rare and desirable people will pay for it.
I'm currently bidding on a property which is now about 15% above the asking price. We can afford it, we really love it, and its less than we've bid on other less desirable properties in more expensive times BUT psychologically its very difficult because It's so drilled into my head that prices are falling and there's bargains out there.
Any opinions, positive and negative, would be appreciated

SimpleSam06

littleredspot wrote: »

However what I'm looking for is in limited supply. All the houses/wrecks that we've bid on have sold for well more than the asking price, hence bucking the trend and proving some economic rule that if you have something rare and desirable people will pay for it.

Or alternately, are the prices being bid well below the market rate for an equivalent non-derelict house?

brianthebard

You've already identified the problem op-simple supply and demand.Identikit estate houses are in oversupply and prices are faillin.Special or one off properties will always hold their value better.Solution to the mental block?Stop following trends!Look at warren buffett and others that know how to profit by looking in places others are unwilling to.Economy talk lately has been on a macro level,but isn't what you need to be listening to to make a good choice.

Afuera

Another ecomic theory that may be worth considering is the "Winners Curse":
http://en.wikipedia.org/wiki/Winner%27s_curse

If you have the finance in place to fund the purchase and all of the necessary work then there is no real reason why you should not try to buy it. Assuming of course that this a dream house that you would be happy to live the rest of your days in.

SimpleSam06

Afuera wrote: »

Another ecomic theory that may be worth considering is the "Winners Curse":

I think thats game theory, although I could be mistaken...

littleredspot

Thanks for all the advice, its usefull to get an outside opinion when you're emotionally involved. We kept going till it was starting to make little sense. There's still two bidders, EA says that its the only house on his books that has ANY bids!!

gurramok

littleredspot wrote: »

Thanks for all the advice, its usefull to get an outside opinion when you're emotionally involved. We kept going till it was starting to make little sense. There's still two bidders, EA says that its the only house on his books that has ANY bids!!

In that case its just one house that has demand that can push the price up while the others are stuck waiting for bids.
Think thread title should be renamed 'some house prices going up' rather than an entire view of the market.

Victor

Malahide has the highest average wealth (or is it income) nationally - thats what you are bidding against.