How much did house prices drop after 2008?

Abril9

Hello Everyone,

Please forgive me for posting this thread (in case something similar, specifically on this topic already exists).

I am a millennial and a long time boards fan and reader (but non poster). I made an account to start this thread as I was wondering if I could pick peoples memories on the recession post 2008 in terms of house prices.

I am now at the age where I think it is time to start thinking about a house purchase. I was not as "mature" back in 2008

We are in unprecedented times at the moment.

The house market is all over the place and everyone has their own predictions as to what will happen.

Some say we will see continual price increases (like we are seeing now) and others say we are on the verge of a monumental economic collapse.

Me, personally I do not know what to think.

However this got me thinking about what happened in 2008. I am curious to know if anyone was looking for a house when things dropped off a cliff back then?

How bad did things get with house prices? How big were the price drops people noticed?

For example did a standard three bed semi-d drop by monumental percentages? Did we see the market truly being reset?

Smee_Again

Depends on the location but the new build I bought, a 3 bed semi-d, in 2018 for €235K was €340K in 2007/8 and could be bought for €200k in 2016/17.

The highest drop was 50% for one bedroom apartments if I am remembering correctly.

30-40% otherwise. some houses were unsellable for years.

I bought in 2004 for 250. The estate peaked about 2007 for 380 or thereabouts.

2011 / 12 they were selling for 125 to 150 for the ex rentals that needed work. 2 doors down sold for 125 and he put another 50 in but it's in great shape now. I'm unsure how much the houses that were in good condition were going for but the property tax was calculated at 200k

Back in and around 350 again now.

As said above, apartments got hammered because they were never supposed to be long term for most people

Lexio7

Speaking to neighbours in my estate who bought in 2005/6, when the estate was built, paid c.380k.

I paid 260k in 2015.

Current asking price is now 320k.

Anyone remember the 'buy one get one free' semi-D's? Can't remember where they were, but I seen it pop up a couple of times in presumably more rural areas.

magicbastarder

[Deleted User] wrote: »

The highest drop was 50% for one bedroom apartments if I am remembering correctly.

30-40% otherwise. some houses were unsellable for years.

I'd say it was about 66% drop. I sold a house in 2012 for roughly one third what it would have fetched at the peak. And that seemed consistent, I was seeing houses asking 300-350k in 2012 that would have been asking 900k to a million a few years earlier.

[Deleted User]

[Deleted User] wrote: »

Anyone remember the 'buy one get one free' semi-D's? Can't remember where they were, but I seen it pop up a couple of times in presumably more rural areas.

Donegal was selling entire estates and apartment blocks weren't they?

Eire Go Brach

I bought 2 bed top floor for 296k in 2006
Seen 2 beds in different block ground floor go for 99(not like for like)

I'm only out of negative equity in the last 12 months.

Buying a house now and feels the exact same as 2006. Prices going up up up. It's horrible. Buying at the wrong time again. Extremely Frustrating.

The issue now is supply. Very different situation than 2008+
Can't see prices falling off a cliff like the last time. Might level off.
Demand is their. Probably the most in a long time as people can save more.

My brother bought a house in 2006 for 235k. Next door neighbour bought in 2018 for 95k. Sold it about a month ago for 185k.

dubrov

The CSO publish an index that will give you an idea by county council.

duffman13

Abril9 wrote: »

Hello Everyone,

Please forgive me for posting this thread (in case something similar, specifically on this topic already exists).

I am a millennial and a long time boards fan and reader (but non poster). I made an account to start this thread as I was wondering if I could pick peoples memories on the recession post 2008 in terms of house prices.

I am now at the age where I think it is time to start thinking about a house purchase. I was not as "mature" back in 2008

We are in unprecedented times at the moment.

The house market is all over the place and everyone has their own predictions as to what will happen.

Some say we will see continual price increases (like we are seeing now) and others say we are on the verge of a monumental economic collapse.

Me, personally I do not know what to think.

However this got me thinking about what happened in 2008. I am curious to know if anyone was looking for a house when things dropped off a cliff back then?

How bad did things get with house prices? How big were the price drops people noticed?

For example did a standard three bed semi-d drop by monumental percentages? Did we see the market truly being reset?

The family house was valued at 280k in late 07. Decided to stay put and was valued again at 145k in 2011/12. Only sold the house for 265 in 2020 so never fully recovered fully until probably now. Mid terrace house in Dublin suburb

runwithme

45 mins drive from Dublin City. Border county. Big town. 3 bed semi d. Peaked at 317,00 in April 2007. Floored at 131,00 in 2012. They are selling within two weeks currently. Current price 255,00.

Slideways

I bought an older 2 bed semi for 95 in 2008 after it was offered for 125k in rural Ireland.

4 years later the house next door sold for 38 and it had an extension. I still think its in negative equity. Luckily i left Ireland in 2012 and have the same tenant in there since.

Padre_Pio

I'm renting in an estate that was built in 2006.

Detached houses were advertised at 480k at the time (v expensive according to an AskAboutMoney thread at the time)
Most sold at or near that price.
The builder folded in 2007.

They're selling today around 350-400k

Shame the PPR doesn't go back to pre-2010

Pussyhands

Does anyone have the link in google maps to the estate in rural Roscommon where there were these grand detached houses?

Signore Fancy Pants

I started looking to buy in 2006 but nothing was achievable where I live. I held off and bought a house in 2011, 61% cheaper than it was on sale for in 2010.

From what I bought it for, to what it is "valued" at in 2020, its up 89% from what I paid.

Happy out....not sure if that helps.

I know some 2 bed apartments in Naas were bought for €285k ish in 2006 and they were guiding at €120k in the 2010/2011 period......... loads sold in 2006 and only a handful sold at the low prices though.

antimatterx

I know in my estate that 3 beds semis with front/back garden and a garage sold for 650K in 2006, in 2012 they sold for 375K, they're back up to nearly 600K now.

antimatterx

Augeo wrote: »

I know some 2 bed apartments in Naas were bought for €285k ish in 2006 and they were guiding at €120k in the 2010/2011 period......... loads sold in 2006 and only a handful sold at the low prices though.

I suppose the big issue was they were cheap because people couldn't / didn't have the money to buy them.

Padre_Pio

antimatterx wrote: »

I suppose the big issue was they were cheap because people couldn't / didn't have the money to buy them.

Apartments aren't a big seller in general. People generally don't like being surrounded and not having a garden.
Maybe in Dublin city centre where there's no other option, but Naas! :eek::eek:

Padre_Pio

Padre_Pio wrote: »

Apartments aren't a big seller in general........

You'd have people queuing up to buy them now.

Eric Cartman

Padre_Pio wrote: »

Apartments aren't a big seller in general. People generally don't like being surrounded and not having a garden.
Maybe in Dublin city centre where there's no other option, but Naas! :eek::eek:

it wouldn't be an issue if we built apartments well, plenty of them in periphery towns on the continent but here the complete absence of any decent sound insulation plus ineffective management companies and no real useable green spaces / insufficient parking basically writes them off for family living.

I told a German colleague before about complaints about water pump noise and that there are blocks where you're not allowed wooden floors because of noise and he genuinely thought I was taking the piss.

Padre_Pio

Eric Cartman wrote: »

I told a German colleague before about complaints about water pump noise and that there are blocks where you're not allowed wooden floors because of noise and he genuinely thought I was taking the piss.

I staying in one built in 2005 for a few days. The hot press was next to the bedroom and the water pump turned on whenever anyone used a tap. Had to throw towels over it to keep the noise down.

It was a duplex apartment and both floors shared a long bottom floor to top ceiling window, with a lovely airgap, so anyone on the upstairs landing could hear all the downstairs kitchen noise.

Buddy Bubs

I was looking at house in 07 or 08 and it was 360k. New build. Market crashed and I rented with 3 friends for 2 years. I bought same house I was looking at in April 2010 for 220k.
So about 40%.
Houses on the road dropped a bit further to about 190k by 2012. Full drop was close to 50% from peak.
Started recovering then. Worth about 300-310k now.

Padre_Pio

Buddy Bubs wrote: »

I was looking at house in 07 or 08 and it was 360k. New build. Market crashed and I rented with 3 friends for 2 years. I bought same house I was looking at in April 2010 for 220k.
So about 40%.
Houses on the road dropped a bit further to about 190k by 2012. Full drop was close to 50% from peak.
Started recovering then. Worth about 300-310k now.

It's mad that you could have bought in the boom and not made a profit 15 years later. Fair enough, you've 15 years of mortgage behind you, so better than renting, but still.

I saw about a 50% drop (roughly) where I was.

Wildly Boaring

Other bought in ongar in 2013
4 bed end terrace.
Cost him 180
340 new in 2006

Terrible build quality though

Mad_maxx

Abril9 wrote: »

Hello Everyone,

Please forgive me for posting this thread (in case something similar, specifically on this topic already exists).

I am a millennial and a long time boards fan and reader (but non poster). I made an account to start this thread as I was wondering if I could pick peoples memories on the recession post 2008 in terms of house prices.

I am now at the age where I think it is time to start thinking about a house purchase. I was not as "mature" back in 2008

We are in unprecedented times at the moment.

The house market is all over the place and everyone has their own predictions as to what will happen.

Some say we will see continual price increases (like we are seeing now) and others say we are on the verge of a monumental economic collapse.

Me, personally I do not know what to think.

However this got me thinking about what happened in 2008. I am curious to know if anyone was looking for a house when things dropped off a cliff back then?

How bad did things get with house prices? How big were the price drops people noticed?

For example did a standard three bed semi-d drop by monumental percentages? Did we see the market truly being reset?

spring 2007 was the peak in terms of price , like all bubbles , the final push up is often the strongest but lasts quite a short time so while the bubble pushed up to a peak in the spring of 2007 , by the end of 2007 it was not that much higher than on January 1st 2007

between mid 2007 and the end of 2009 , prices fell 40% , in the years 2010 , 2011 and 2012 , they fell another 20% , prices in Dublin hit the bottom in late spring of 2012 , 2013 was the bottom in the likes of Cork city and Galway city , Limerick city didnt hit the bottom until late 2014 , same with much of the rest of the country

that was a perfect storm of insolvent banks , a global recession of which the world had not witnessed since the 1930,s and a completely barmy ECB chief who thought it wise to raise rates during said recession

its unlikely to be repeated again

Mad_maxx

Deleted User wrote: »

The highest drop was 50% for one bedroom apartments if I am remembering correctly.

30-40% otherwise. some houses were unsellable for years.

apartments dropped 62% from peak to trough in Dublin , houses circa 58%

Mad_maxx

i spent about a month looking at houses around oxmantown road stoneybatter in the summer of 2012

two bedroom terraces could be bought for 220 k , same kind of houses that needed a good bit of work could be bought for as low as 150 k but circa 175 k on average , those two bedroom terraced houses were renting at the time for 1100 per month .

i remember a lovely own door one bed apartment in that manor st complex being on sale , i bid 101k , the EA went on holidays for two weeks and i could not get her on the phone again even though i was the top bidder at that stage , i saw it sold for 109 k on PPR the following march so probably sold towards end of 2012 , i opened a thread about it on property pin and the cranks over at that site reckoned it was worth 60 K max , same guys are still singing the same tune today

Mad_maxx

Augeo wrote: »

I know some 2 bed apartments in Naas were bought for €285k ish in 2006 and they were guiding at €120k in the 2010/2011 period......... loads sold in 2006 and only a handful sold at the low prices though.

i was living in Navan in 2006 , Academy square ( which was launched with a big fanfare but nice apartments all the same ) were 290 k for two beds , even today they are barely making 180 k and could be bought for under 75 k as recent as 2014

crisco10

Our house was bought for about 600k in 2006/2007 and we bought off that owner for 375k in 2015. Think the lowest price in the estate was about 250k in 2011/2012.

Standard to small semids in South Dublin suburb.

Geuze

Here is the latest CSO data:


https://www.cso.ie/en/releasesandpublications/ep/p-rppi/residentialpropertypriceindexjanuary2021/

Geuze

Abril9 wrote: »

Some say we will see continual price increases (like we are seeing now) and others say we are on the verge of a monumental economic collapse.

Me, personally I do not know what to think.

A monumental economic collapse?

On top of the savage recession in 2020?

The majority opinion is for a recovery/rebound in 2021.

Geuze

https://data.cso.ie/

This is a link to the CSO database.

HPA13 is the code for the Residential house price index.

It starts in 2005.

The base year is 2015 = 100.

2007 was the peak = 162.7

2012 was the trough = 76.

So a national average peak to trough change of 53%.

Pussyhands

Geuze wrote: »

A monumental economic collapse?

On top of the savage recession in 2020?

The majority opinion is for a recovery/rebound in 2021.

Housing generally lags the economy. Financial crisis hit in 2008 but prices didn't hit lows until 4 or 5 years later.

riclad

prices went down by 40- 60 per cent .
say you bought a house for 320k its tough when its suddenly worth 140k.
it was a crazy time,
you could go to a bank and borrow 7 times your salary.
some people simply went to the uk and declared bankruptcy ,
go to the uk and stay for a few months.
Come back to ireland and start over again with zero debt.
people were paying 250k for an ordinary house in a small rural town
maybe the worst hit people were the people who paid 300k for a basic one bed apartment.
And now its worth 160k.

Pussyhands

riclad wrote: »

prices went down by 40- 60 per cent .
say you bought a house for 320k its tough when its suddenly worth 140k.
it was a crazy time,
you could go to a bank and borrow 7 times your salary.
some people simply went to the uk and declared bankruptcy ,
go to the uk and stay for a few months.
Come back to ireland and start over again with zero debt.
people were paying 250k for an ordinary house in a small rural town
maybe the worst hit people were the people who paid 300k for a basic one bed apartment.
And now its worth 160k.

How did people afford it though??

Someone earning 50k would have taken home roughly 3200 and repayments would have been 1500 per month.

punisher5112

Imo the craziest thing that happened was that those renting, had no chance or choice to buy and it's exactly these that could have turned the tables.....

It's near impossible to get a mortgage now, of course it was worse in the crash but selling off units as they call them for buttons to big multinationals and then getting absolutely zero tax back from them and their extortionate rent prices which of course they can charge as them is the rates.

Apartments, houses finished or near finished left to rot for 10 years or more when people could have been living in them and contributing to these areas, tax intake, services etc etc which all in turn bring the economy back up.

Have the vulture funds and pension funds, insurance companies etc all in it to make huge money and society losing out.

So much could have been done differently.

House we bought 2 years ago would have been near €100k cheaper around 2011

Samuel T. Cogley

riclad wrote: »

maybe the worst hit people were the people who paid 300k for a basic one bed apartment.

Yep :pac:

Abril9

Thank you everyone for all of the great answers, insights and feedback really appreciated!

wally1990

antimatterx wrote: »

I know in my estate that 3 beds semis with front/back garden and a garage sold for 650K in 2006, in 2012 they sold for 375K, they're back up to nearly 600K now.

Jesus that some rollercoaster

Samuel T. Cogley

I often wonder how many people lost their family home due to the 2008 crash, not investment properties - there were plenty of those lost, but actual repossessions or family homes.

One thing people who bought prior to the crash have going for them in many cases is a tracker rate, again I wonder what the 'break even' point is on someone who paid top whack with a tracker vs someone who bought in 2015/2016 when things were a bit more sensible but rates not as low as we have now.

Dr Turk Turkelton

House we live in now was built in 1997 but I don't know how much it was then.
Lady we bought it off gave 950000 for it in 2006.
We bought it in mid 2013 for 340000.

beauf

Depends on location. Where was looking some 2m houses dropped to 1.2m. but in the same area some 3 bed semis only dropped from 400 to 340 ish but are back to 400 maybe more now. 4 beds were 650-700 dropped to 550-650 but are back now to 650-750.

But I can see bigger drops and rises in other areas especially the further away from cities you are.

So when you look at the prices on boards and similar be very aware it's very location dependent. Often only 1k away makes a huge difference in price and how stable their prices are.

Mad_maxx

Pussyhands wrote: »

Housing generally lags the economy. Financial crisis hit in 2008 but prices didn't hit lows until 4 or 5 years later.

the housing collapse here was incredibly long and drawn out

magicbastarder

magicbastarder wrote: »

I was seeing houses asking 300-350k in 2012 that would have been asking 900k to a million a few years earlier.

just checked the property price register for one of the roads we looked at a house on; shandon park in phibsboro. in 2012, they went for between 220k and 350k.
last year, only one house on the road sold; for €638k.

beauf

Samuel T. Cogley wrote: »

I often wonder how many people lost their family home due to the 2008 crash, not investment properties - there were plenty of those lost, but actual repossessions or family homes. ...

Used to be stories in the media about it. The banks screwed lot of people over. Forcing them out of homes they could have stayed in if the bank had simply restructured the loans. They'd get family's out then sell the home at a bigger loss than the restructuring the debt with have cost. So friend and family would buy the home off the bank for cheap then sell it back to the family at cost. Made no sense.

lasalle

My 3 bed in dublin, bought in 2008 for €335k, 2010 builder was selling remaining units for €165k, selling for €290k now, got tracker mortgage though so not all bad!

beauf

magicbastarder wrote: »

just checked the property price register for one of the roads we looked at a house on; shandon park in phibsboro. in 2012, they went for between 220k and 350k.
last year, only one house on the road sold; for €638k.

You also have to remember that a lot of locations are a lot nicer now than they were 10yrs ago. You've have 10yrs of immigration and growth, making areas that were just meh into new vibrant and modern areas.