62.2% of residential properties were purchased by cash buyers in Q1 2013

gurramok

Thats according to the Indo http://www.independent.ie/business/personal-finance/property-mortgages/twothirds-of-property-deals-made-for-cash-in-first-quarter-29472357.html

The number of cash buyers has risen from last year. Not sure if the following is the Indo's own analysis or from the mouth of the estate agents though probably the latter.

The Property Price Register shows 4,774 new transactions in the first quarter of the year. The banks say 2,068 mortgages were taken out in the same period.

When remortgaging and top-ups are removed, there were 1,803 regular mortgages remaining. These account for just over 37pc of purchases.

It can take months for all property sales to appear on the register so a more up-to-date analysis is not yet possible.

If true, there is only so much cash out there to sustain this. Thoughts?

StillWaters

It would tale a long time to spend €140 bn. Add the introduction of REITs and foreign investors eyeing up the property sector and I can't see cash sales abating for a while.

OMD

gurramok wrote: »

Thats according to the Indo http://www.independent.ie/business/personal-finance/property-mortgages/twothirds-of-property-deals-made-for-cash-in-first-quarter-29472357.html

The number of cash buyers has risen from last year. Not sure if the following is the Indo's own analysis or from the mouth of the estate agents though probably the latter.


If true, there is only so much cash out there to sustain this. Thoughts?

Taking 3 months data is very risky. For example in first 3 months of the year there were 1803 "regular mortgages" taken out or 601 a month. Yet in June alone there were 1518 "regular mortgages". http://www.ibf.ie/Libraries/Research_Statistics/IBF_Mortgage_Approvals_publication_June_2013_FINAL.sflb.ashxTherefore by selectively using these figures (as you and the Indo have done) I can state that the mortgage market has taken off with mortgages increasing by 250%. We are therefore in the middle of a boom.

Or,

using figures like you have for what is traditionally the quietest quarter of the year, just after mortgage relief ended, is total bullsh*t

gaius c

OMD wrote: »

Taking 3 months data is very risky. For example in first 3 months of the year there were 1803 "regular mortgages" taken out or 601 a month. Yet in June alone there were 1518 "regular mortgages". http://www.ibf.ie/Libraries/Research_Statistics/IBF_Mortgage_Approvals_publication_June_2013_FINAL.sflb.ashxTherefore by selectively using these figures (as you and the Indo have done) I can state that the mortgage market has taken off with mortgages increasing by 250%. We are therefore in the middle of a boom.

Or,

using figures like you have for what is traditionally the quietest quarter of the year, just after mortgage relief ended, is total bullsh*t

Slightly strong language there because this trend of high cash sales has been going on for a while and it's markedly different to trends in other western countries so it's indicative that there's something quite wrong with our housing market.

OMD

gaius c wrote: »

Slightly strong language there because this trend of high cash sales has been going on for a while and it's markedly different to trends in other western countries so it's indicative that there's something quite wrong with our housing market.

If 62% of buyers are cash buyers, that means that on average we are now seeing over 5,500 property sales a month. If that is the case then anyone saying there will be further price falls is not facing reality. Over 5,500 a month means 70,000 a year. If that is happening then prices are going to rise and rise significantly.

Or

As I said this could be a load of bull **** selectively choosing figures to make it sound much bigger than it is.

Victor

There were several high profile purchases of large developments by foreign investors that each involved hundreds of units, e.g. Clancy Quay.

In other news, the banks don't seem to be lending much.