How much did house prices drop after 2008?

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.

magicbastarder

i bought a house in 2003 for €260k (well, 270 if you include stamp duty) and sold it in 2012 - at the bottom - for €165k. i'd have been able to get probably €450k for it at the peak.

magicbastarder

beauf wrote: »

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.

shandon was always one of the more desirable locations in phibsboro - as mentioned, they were changing hands for about a million at the peak.
obviously phibsboro has become more vibrant since with the change of use of grangegorman campus, but it was popular before the peak.
i'd started looking in stoneybatter first in 2002, just as it became really popular - house prices jumped 25% there in the space of a few months, from what i saw.

Buddy Bubs

Padre_Pio wrote: »

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.

Theres a friend of mine bought in 2005 Dublin 15, 2 bed apt, horrible thing. About 260k he paid.
He moved to a 3 bed house in 2019 and didn't have a penny in equity in the apartment, just sold it to clear mortgage. 14 years of renting really, had to start again from scratch.

Another work colleague bought in Dublin 22 for 350k, a 3 bed duplex, bought with her brother, also around 05 or 06. As they inevitably looked to start their own lives in their late 20s and 30s they bought houses of their own with their partners but didn't have any equity either.

If I had bought in 07 when I was looking first, I wouldn't have much now either, if any, even if 14 years in.
But because I bought in 2010 at a discount of 140k, I have about 160k in equity under me at the moment. Just timing really.

Luckily, it's a house and an area I enjoy living in but I do plan to use the equity in it to buy my brother and sisters share in a house my parent's will leave us, our childhood home. Could be 15 to 20 years away but I want to move back there eventually.

dinjo99

I live in an estate in North County Dublin. Approximately 200 4 bed semi detached housed. They peaked in late 2007 early 2008. 3 or 4 houses sold at 825k plus.

Approximately 4 years later you could buy any house in the estate for between 320k and 350k.

They are now going for 550k to 580k.

AndyBoBandy

Neighbours say houses where I live peaked at around €550k in the boom

We bought in 2014 for €249k (almost bought in the same estate in 2013 for €227k)

Neighbours house sold in 2019 for €390k

Samuel T. Cogley

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.

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.

Very very few!
friend of mine bought back in 2006/07, hasn't paid a single penny on the mortgage since 2012. Still living in it.

smokie72

Bought the family home in mid 2006. House was valued at €360,000 then. A house on the same road sold for €420,000 in February 2007.
4 years later in 2011 a house on the end of the road went for €180,000. Houses are 3 bed semi's. Glad I already owned a share of my house. No way could I afford a mortgage for that amount in 2006. I got a 100% mortgage as well.

Pussyhands

beauf wrote: »

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.

Not everyone has family to buy a house and sell it back though.

How would they get a mortgage if they've been evicted for non payment?

Sure what you're saying would be beneficial for the owner if they could essentially just write off half their mortgage. That doesn't count as the bank "screwing them over"

It's not nice but evictions need to happen. You sign up to an agreement, you say you'll pay X for Y years and if you don't, you agreed you will lose your home.

If someone loses their job, there's no restructuring possible if you have a large mortgage.

Ning

499k during the peak for 3-storey terraced. Dunboyne Castle Estate. Bought for 230k in 2015, sold for 295k in 2018. Dropped by more than 50% as the estate is pyrite infected.

Mad_maxx

magicbastarder wrote: »

i bought a house in 2003 for €260k (well, 270 if you include stamp duty) and sold it in 2012 - at the bottom - for €165k. i'd have been able to get probably €450k for it at the peak.

interesting , assume you bought towards the end of 2003 ? as even the lows of 2012 were no lower than 2002 levels