Sell now or wait?

tunner

Hello all. Hope this is the correct place to post this. We live in Dublin 7 and want to move elsewhere in the same area to a bigger house as we have one baby and wish to have another 2 perhaps all going well and we have outgrown our current house.
The current house was worth 480 about a year and 1/2 ago and is now worth between 300 and 320K and the ones we are looking at are selling at between 235 and 350K. We are not first time buyers and are not in negative equity (currently) but we are worried that now might not be the right time to sell but we were going to sell 6 monhs ago and said we would wait and the prices have fallen still.

1) do you think it is the right time to sell or would the house just sit there till the budget in Jan.
2) Are houses selling at all at the moment?

We know its a bad time to sell but it is an excellent time to buy. its just with stamp duty and estate agent fees etc......

Just looking for some guidance here guys...

The_Conductor

When property is priced to attract buyers- it is selling. The big problem at the moment is unrealistic expectations on the part of sellers- combined with extraordinary bolshie behaviour on the part of purchasers- capped with lending institutions having totally rewritten their lending rules.......

None of us have a crystal ball- we do however have economic indicators- none of which make pleasant reading......

The ESRI this morning predicted a further fall in the Irish economy of 4.1-4.5% in 2010 (on top of the 16% for 2009 and 7.8% for 2008). They also suggest that by the end of 2010 over 350,000 property owners will be in negative equity- and over 35,000 will be in default on their mortgages.

In this context- it is probable that house prices will continue to fall, albeit at a slowing pace. House prices in the general Dublin area have already fallen by an average of 38% since July 2006 (CSO figures)- and by all reckoning- have some distance to go.......

If I were in your position- I'd merrily undercut the current market prices to sell at any cost- and then rent instead. Rents are also in freefall (and vacancy rates are increasing- as more and more people elect to emigrate)- whereas mortgage rates are going to rise (probably not until 2011- but a 3.5-4% increase should not be ruled out, depending on how the continental recovery takes hold).

The Irish economic prognosis- is pretty diabolical- but why wait until the budget in December to make a decision?

What do you imagine is going to come in the budget in December that will assist you in deciding whether to sell or whether to hold on- thats what I'd like to know......

warrenaldo

Waiting until the Budget in order to buy makes sense - but I dont see why you are waiting until the Budget in order to sell.

I am in a prety similar position. I have recently put my place up for sale - its the cheapest in the area and in excellent condition.
It's only on the market a few days but we fear that there may be no interest due to buyers waiting. Waiting for what - I am not sure. More price reductions - probably.

The_Conductor

warrenaldo wrote: »

Waiting until the Budget in order to buy makes sense - but I dont see why you are waiting until the Budget in order to sell.

I am in a prety similar position. I have recently put my place up for sale - its the cheapest in the area and in excellent condition.
It's only on the market a few days but we fear that there may be no interest due to buyers waiting. Waiting for what - I am not sure. More price reductions - probably.

Well- there most probably will be more price reductions- but those who wait will have to accept that mortgage interest relief (TRS) is most likely going to be further reformed (the stated policy is to abolish Mortgage TRS in its entirety- for everyone over a period of time). Those who wait- will have an additional cost associated with repaying their mortgage.

Yes- prices are continuing to fall- and you having a house in good condition priced below all others in the area- has in fact established the new 'going-price' for the area (though estate agents would probably be loathe to admit as much).

Irish property is in uncharted water, and all bets are off the table......

warrenaldo

smccarrick wrote: »

and you having a house in good condition priced below all others in the area

Not quite true - an appartment. This is my main reason for concern.

Selling an appartment in the current climate - wont be easy.