Galway House Prices

Aerohead

Here we go again with Auctioners hype about house prices on the rise, you would be a fool to go along with what they say about the prices going up, they are putting property on the market at the lowest price they can do, then it goes to auction and sells higher than the lowest price and hey presto they are going up again, the National trend is still going down.

Who can forget the headline they used to come out with in the bad old days " Your last chance to buy in this most sought after area " putting young people into a panic to take out loans and now look where they are today.

Totally irresponsible in my humble opinion.

biko

Is there an article we are supposed to be discussing?

Aerohead

In todays Sentinel

http://www.galwaynews.ie/31281-house-prices-galway-city-are-increase-again

Wompa1

Aerohead wrote: »

Here we go again with Auctioners hype about house prices on the rise, you would be a fool to go along with what they say about the prices going up, they are putting property on the market at the lowest price they can do, then it goes to auction and sells higher than the lowest price and hey presto they are going up again, the National trend is still going down.

Who can forget the headline they used to come out with in the bad old days " Your last chance to buy in this most sought after area " putting young people into a panic to take out loans and now look where they are today.

Totally irresponsible in my humble opinion.

I agree with you. Don't trust the reports. It's all spin

dloob

Well we have the property price register now so we'll see what happens to it over the next few months.
Although its lack of details can make good comparisons difficult.

AngeGal

Wompa1 wrote: »

I agree with you. Don't trust the reports. It's all spin

Exactly, the piece points out they are rising according to estate agents, hardly an unbiased source!

Doom

These auctions are a con job, did you see the AMV they put on the properties....joke....shows one thing Auctioneers are crap at their jobs

Prices may well be rising in certain neighbourhoods across the country. The problem is the way the media reports it makes it seem it's across the board. Don't believe the hype.

I can't see house prices rising for a while. Banks are giving out very few mortgages for a start!

Check the property database to get a true reflection on selling prices.

http://www.propertypriceregister.ie/website/npsra/pprweb.nsf/PPR?OpenForm

McTigs

“Knocknacarra is as popular as ever, and there is a real shortage of good quality homes on the market there – that’s proven by the fact we are seeing two or three bidders on each quality house for sale, and prices have risen.
“Three-bed semis there were down to €150,000 a year ago. Now, they’re selling for between €180,000 and €200,000. Four-bed semis would have been down to €180,000, and now they’re selling for north of €200,000 in some cases, particularly those with the extra side room or converted attic.
“In many instances, we’re seeing properties selling for €10,000 to €15,000 above the asking price, because there is so much interest.

So we're seeing between 10 and 30% increases in knocknacarra in one year are we Niall. In fairness, i don't think so, i really really don't.

zarquon

McTigs wrote: »

So we're seeing between 10 and 30% increases in knocknacarra in one year are we Niall. In fairness, i don't think so, i really really don't.

Agreed, that's a load of nonsense. Houses are overpriced in Knocknacarra. I've seen some of the same houses on the market for a long time without shifting, even at reduced costs. Statements about popularity and increases are just propaganda by vested interests hoping for an increase in house prices.

ScumLord

I heard them saying this on the radio the other day, and I remember hearing the same thing months before. But the overall tally was prices being the same or down more.

It all sounds like bul**** to me.

serfboard

Niall Browne, Residential Sales Manager with O&#8217 wrote: »

Knocknacarra is as popular as ever, and there is a real shortage of good quality homes on the market there – that’s proven by the fact we are seeing two or three bidders on each quality house for sale, and prices have risen. Three-bed semis there were down to €150,000 a year ago. Now, they’re selling for between €180,000 and €200,000. Four-bed semis would have been down to €180,000, and now they’re selling for north of €200,000 in some cases, particularly those with the extra side room or converted attic.

dloob wrote: »

Well we have the property price register now so we'll see what happens to it over the next few months.

Here is a summary of the property price register information for 2012 - there were 37 properties sold in Knocknacarra. Only 5 went for 150K or less. 18 went for 180K or less, but we can guesstimate that a lot of these would be three beds. The rest went for over 180K.

dloob wrote: »

Although its lack of details can make good comparisons difficult.

A very good point. It doesn't tell you how many bedrooms are in the property or whether it's an apartment or house or, if it is a house, whether it's terraced, semi-detached or detached.

All it tells you is " Second-Hand Dwelling house /Apartment". Helpful, eh? :rolleyes:

Now what vested interest does the lack of detail suit?

Birroc

Wompa1 wrote: »

I agree with you. Don't trust the reports. It's all spin

It is all spin but Bertie would tell you to commit suicide.

Lets look at the so called "fundamentals"
* Banks are not lending
* People's disposable income decreasing (e.g. property tax)
* Number of mortgages in distress going up and up
* Unemployment remains high
* No growth in the economy
* Emigration of young people (1st time buyers) very high. Non nationals also leaving in droves
* Lots of properties empty (was it 250,000 units nationwide last year?)~
http://www.independent.ie/business/irish/itll-take-us-43-years-to-fill-all-empty-houses-26863864.html

Why would house prices rise? Supply & Demand.
In fact I think they have a fair bit to fall yet.

Birroc

zarquon wrote: »

Agreed, that's a load of nonsense. Houses are overpriced in Knocknacarra. I've seen some of the same houses on the market for a long time without shifting, even at reduced costs. Statements about popularity and increases are just propaganda by vested interests hoping for an increase in house prices.

Agreed, I also think the quality of the houses in Knocknacarra is poor. Many new houses thrown up without good sound insulation or thermal insulation.

ted2767

Why would anybody believe anything an auctioneer would say?
It's 100% self propaganda in my opinion.
Agree re banks not lending you'd probably need a very steady job and about 20% down payment to get a mortgage from a bank now.

Birroc

ted2767 wrote: »

Agree re banks not lending you'd probably need a very steady job and about 20% down payment to get a mortgage from a bank now.

Only people buying these days are (a) older people (50+) that were not caught on the 'false' property ladder and (b) public servants (especially the older ones) who have the safest and better paid and pensioned (important) jobs in the economy now.

belcampprisoner

what's the job situation,a house is only as valuable as the rent
you can get for it,the banks this summer can start taking back properties,
banks are still not lending

only big cities will prices rise

4th horsemen

I don't think house prices will go up anytime soon, even when things start getting better I'd imagine they will stay in and around at the same price but will not be going up anytime soon.

As mentioned: Property tax, Water Charges, Stamp Duty for 1st time buyers now and also no more Mortgage interest Relief for any house bought from 2013 and will be done away with altogether (incl. people who have it now) in 2017.

ted2767

ted2767 wrote: »

Why would anybody believe anything an auctioneer would say?
It's 100% self propaganda in my opinion.
Agree re banks not lending you'd probably need a very steady job and about 20% down payment to get a mortgage from a bank now.

Some people believe anything

MilionMilesAway

The bigger question is how can a paper print such a onesided article. Anyone who is foolish enough to go out and make the biggest investment of their lives after reading an article in a 4mm thick paper that costs a euro, then they deserve everything they get.

mr.donkey

Been following the housing market in Galway for the last 5 years, my experience is that 12 months ago you would be able to throw in an offer of 10%-20% below and asking and have a fair chance of coming to a deal. At the moment prices would be holding around asking, there is certainly alot less leeway for bargaining. My experience is only in the Salthill/Knocknacarra area.
Prices appear to have stablised in the `good` areas of the major cities across Ireland, rural dwellings still appear to be falling...

mr.donkey

mr.donkey wrote: »

Been following the housing market in Galway for the last 5 years, my experience is that 12 months ago you would be able to throw in an offer of 10%-20% below and asking and have a fair chance of coming to a deal. At the moment prices would be holding around asking, there is certainly alot less leeway for bargaining. My experience is only in the Salthill/Knocknacarra area.
Prices appear to have stablised in the `good` areas of the major cities across Ireland, rural dwellings still appear to be falling...

So how many houses have you made offers on? Or was it research?

Stick up a few links to back it up

mr.donkey

I would respectfully respond Rarnes1 that I did make some offers but the ins and outs of that are noone elses business. I am commenting on the thread because it is something I have direct recent experience of in a part of Galway city, people are free to take or leave my opinion. There is a good level of affordability now after the huge drop in prices over the last 5 years, I wouldn't expect a super soaraway market to redevelop until the banks are fully recapitalised (20??), and please God such a market never does redevelop, but I'd be surprised to see any more price drops in the areas previously outlined

dantbyhid

MilionMilesAway wrote: »

The bigger question is how can a paper print such a onesided article.

I'm guessing that certain auctioneers take out some nice big ad spaces regularly so that might 'influence' what is written.... that's a total guess though.

mr.donkey

mr.donkey wrote: »

I would respectfully respond Rarnes1 that I did make some offers but the ins and outs of that are noone elses business. I am commenting on the thread because it is something I have direct recent experience of in a part of Galway city, people are free to take or leave my opinion. There is a good level of affordability now after the huge drop in prices over the last 5 years, I wouldn't expect a super soaraway market to redevelop until the banks are fully recapitalised (20??), and please God such a market never does redevelop, but I'd be surprised to see any more price drops in the areas previously outlined

I wasn't asking for the exact details of your offers.

You are suggesting house prices are stabilising. I'm just asking you to back it up with facts.

Otherwise it's just your opinion.

mr.donkey

Ranes1, you did ask for details of my offers "So how many houses have you made offers on?". I am suggesting house prices are stabilising in `good` urban areas, that is my feeling from being interested in the housing market in Galway, it is my opinion exactly as you suggest, I am posting on this forum for that very reason. There was other (very good) message boards on the issue of housing that delve into the minutia

El_Dangeroso

The reason that prices may be stabilising in desirable areas (if they are at all) is because there is a dearth of supply in those areas for a number of reasons:

1. Who wants to sell at the very bottom of the market? (other than those who absolutely have to)
2. Banks will not/can not reposess houses in substantial arrears (this will change in the coming 2 years)
3. People may want to sell to move elsewhere but cannot due to negative equity.

This all means that the housing market is not functioning normally and therefore any stabilisation we are witnessing is based on a very incomplete sample.

Birroc

El_Dangeroso wrote: »

The reason that prices may be stabilising in desirable areas (if they are at all) is because there is a dearth of supply in those areas for a number of reasons:

1. Who wants to sell at the very bottom of the market? (other than those who absolutely have to)
2. Banks will not/can not reposess houses in substantial arrears (this will change in the coming 2 years)
3. People may want to sell to move elsewhere but cannot due to negative equity.

This all means that the housing market is not functioning normally and therefore any stabilisation we are witnessing is based on a very incomplete sample.

Nail on head. Housing market is broken.

However I do not think we have hit bottom yet at all. Many houses still over-valued. The house prices are kept "artificially" high because of #3, #2 and #1 (perception only) above. People also expect debt forgiveness to come into play soon and are waiting to see how they can avail of that (e.g. selling with negative equity loss).

gordongekko

mr.donkey wrote: »

but I'd be surprised to see any more price drops in the areas previously outlined

is the boom getting boomier?

serfboard

Birroc wrote: »

* Lots of properties empty (was it 250,000 units nationwide last year?)~
http://www.independent.ie/business/irish/itll-take-us-43-years-to-fill-all-empty-houses-26863864.html

That Indo article is such sh1t. If there is an oversupply, then why are rents going up?

The problem, as always, is that there's an oversupply in places where people don't want to live. In "centres of economic activity" as NAMA calls them (Dublin, Cork City and Galway City) rents are going up, therefore no oversupply.

Aerohead

I went to see a house in Galway that had a guide price of 160,000 Euro, now this was a big five bedroomed house with a tiled and landscaped front, a big back yard with a chalet, this house came fully furnished , now I am no auctioner but I knew that this guide price was insane it should at least have been over the 220,000 Euro mark, it sold at auction for 320,000 Euro. is this another way for Auctioners to say that the prices of houses are on the way up by putting in very low cost guide prices and the they sell at a higher price and hey presto we are out of the gloom in property prices.

snubbleste

Were you listening to local radio this morning?.. because that is exactly what happened.

Geuze

Aerohead wrote: »

I went to see a house in Galway that had a guide price of 160,000 Euro, now this was a big five bedroomed house with a tiled and landscaped front, a big back yard with a chalet, this house came fully furnished , now I am no auctioner but I knew that this guide price was insane it should at least have been over the 220,000 Euro mark, it sold at auction for 320,000 Euro. is this another way for Auctioners to say that the prices of houses are on the way up by putting in very low cost guide prices and the they sell at a higher price and hey presto we are out of the gloom in property prices.

I viewed this house as well, Carbry road in Newcastle, Galway.

The AMV was keen, 160k for a 5-bed semi with chalet. The location was good, close to UCHG and NUI Galway.

However, the house had issues: planning compliances issues, some asbestos, gun barrel piping, etc. Nothing major, but not hassle-free.

Also, it backs onto Corrib Park.

I expected it to go for more than 160k, maybe 200-220k.

I couldn't believe the 320k achieved at auction. Insane price, which can't be supported by rental income, in my opinion.

snubbleste

Geuze wrote: »

I viewed this house as well, Carbry road in Newcastle, Galway.

Don't forget it's placed right next to the end of the N6 and adjacent to the flight path of helicopter paths to the hospital.

McTigs

Geuze wrote: »

I couldn't believe the 320k achieved at auction. Insane price, which can't be supported by rental income, in my opinion.

even 2 grand a month wouldn't justify that price.

Plenty of repairs and enhancement needed to as you pointed out.


The market is all over the place.... i'm seeing very mediocre houses in ordinary locations get big prices and fantastic houses at what i would think are very reasonable prices not sell at all.

There's no cohesion and asking prices are all over the palce too. There was three pretty identical houses on the same road in shantalla last year, one 121k, one for about 175k and one for over 200k. I must check the register to see what they actually sold for. I'd say most house on daft aren't really for sale, just kiteflying.

Chicken1

I looked at that house as well, when I got there even the wife said to me they have the guide price set at a silly low, how in Gods name could you buy a fully furnished five bedroom for 160k, it is very misleading whats going on.

Im not saying this is happening but I was at an auction of household and electrical items a few years ago, every time something good came up this guy in the back would put up the hand to start off, as more people bid and the price went up your man was quite until the hammer was about to come down he would bid again therby putting up the price further, this guy never purchased any item. hmmmmm I wonder :rolleyes:

McTigs

Chicken1 wrote: »

I looked at that house as well, when I got there even the wife said to me they have the guide price set at a silly low, how in Gods name could you buy a fully furnished five bedroom for 160k, it is very misleading whats going on.

Looking at it from an investment point of view i wouldn't want to be paying much more and to be honest 320k is absolute suicide.

Break it down 5 beds rent at 250 each pm so €1250
By 11 months to allow for vacancy €13750 per year
Deduct property tax, PRTB reg, repairs and renewals, insurance and other misc costs and you're down to €11,000 which is only 6% on a 160k investment.

If the new owner is planning to rent it out they'll only be making 3% on 320k. You'd get that on deposit in the bank for doing nothing.

seriouslysweet

Wonder has it anything to do with the poltergeist house behind it?

ArraMusha

There will always be a number of cases like carbry rd where mad prices are paid by a few ill-informed, overbidders thinking they're back in 2005.
There will also be a number of bargain deals done in the market, but a lot of these in poor areas and/or needing big works. In general though prices should remain low or decline further over next few years.
Factors to consider include the buy to let sector that will load onto the market when banks go on the hunt, and depress prices further.
NAMA still have a lot of properties to offload over next 18mts.
Emmigration.
Austerity.
Unemployment.
Eurozone recession.
Confidence!

snubbleste

Was €2.1m in October 2007 now a measly €660k in June 2013
That's ↓ ~69%

Birroc

snubbleste wrote: »

Was €2.1m in October 2007 now a measly €660k in June 2013
That's ↓ ~69%

Tell him he's dreamin

JohnFalstaff

Birroc wrote: »

Tell him he's dreamin

The second link is to a Property Price Register site and shows that the house actually sold for €660k.

I think it's still overpriced at that, but somebody was prepared to pay it!

45mhrc7evo1d3n

JohnFalstaff wrote: »

The second link is to a Property Price Register site and shows that the house actually sold for €660k.

I think it's still overpriced at that, but somebody was prepared to pay it!

Are you saying that the sale in 2007 never went through? Given that the Property Price Register only records sales since January 2010, the 2007 sale would not be listed there.

To think that someone was prepared to pay 2.1 million for a terraced house in Galway during the boom, makes me feel queasy. It's an unpleasant reminder of how out of hand things got.

Das Kitty

Elsa Yummy Spinach wrote: »

Are you saying that the sale in 2007 never went through? Given that the Property Price Register only records sales since January 2010, the 2007 sale would not be listed there.

To think that someone was prepared to pay 2.1 million for a terraced house in Galway during the boom, makes me feel queasy. It's an unpleasant reminder of how out of hand things got.

Could have been sold by the 2007 buyer

gordongekko

Is there even a parking space with it?

Storm 10

There at it again now with the Bal in Salthill, guide price 350k for f..k sake its a huge building three bar levels in the middle of Salthill, thats going to go for a lot more than that, they will be on the radio the next day saying prices are on the way up, guide price is a joke.

pemtca

Elsa Yummy Spinach wrote: »

Are you saying that the sale in 2007 never went through? Given that the Property Price Register only records sales since January 2010, the 2007 sale would not be listed there.

To think that someone was prepared to pay 2.1 million for a terraced house in Galway during the boom, makes me feel queasy. It's an unpleasant reminder of how out of hand things got.

It did sell in 2007 http://archive.galwayindependent.com/index.php?option=com_content&task=view&id=2463&Itemid=95

mr.donkey

Apartment in Ocean Wave, Salthill, for sale for €160,000 AMV, same apartment 2 doors down sold for €155,000 a year ago, there have indeed been huge falls in the high end of the market but the middling to good properties seem stable now...

45mhrc7evo1d3n

That was my understanding but JohnFalstaff seems to suggest otherwise.

JohnFalstaff wrote: »

The second link is to a Property Price Register site and shows that the house actually sold for €660k.

I think it's still overpriced at that, but somebody was prepared to pay it!

Perhaps he could clarify.

pemtca

Elsa Yummy Spinach wrote: »

That was my understanding but JohnFalstaff seems to suggest otherwise.



Perhaps he could clarify.

It sold for €660,000 recently - it's in the property price register as of June 2013.

45mhrc7evo1d3n

Ok, for everyone who keeps quoting me as if I disagreed with the original post, here's it is:

snubbleste wrote: »

Was €2.1m in October 2007 now a measly €660k in June 2013
That's ↓ ~69%

I read this as follows:
1) 10 St Mary's Terrace sold for 2.1 million in 2007
2) It sold again for 660k in 2013

My reading of John Falstaff's post was that he appeared to be saying that the sale in 2007 didn't go through and that it didn't sell until 2013 i.e "the house actually sold for €660k". I wondered what he was basing that supposition on, that's all.