Boomtime prices 2005 to 2008

WhiteWalls

I keep an eye on the property price register. Can anyone tell me where I could find examples of property prices around this time or even an idea of the prices.

Thanks

SupaCat95

Cant hep you there but if you are looking for the information for the reason I think you want it, Dr Michael J Burry, Ray Dalio and Robert Kiyosaki are all warning of Hyper inflation particularly for the 4th quarter. Very scary predictions

GalwayBmw

WhiteWalls wrote: »

I keep an eye on the property price register. Can anyone tell me where I could find examples of property prices around this time or even an idea of the prices.

Thanks

You can try searching web archives, example:

https://web.archive.org/web/20100128075401/https://www.myhome.ie/residential/dublin-6/property-for-sale-in-milltown-dublin6

Problem is many websites change their URL structure over time so you'll need to find the at the time URLs.

Some_randomer

I can tell you the prices of two different properties in Dublin in 2005 to give you some idea:

- 3 bed semi in Beaumont Dublin 9, built mid 1950s, around 1100 sq ft, decent sized back garden, reasonable condition but still needed 40k spent on it for new kitchen, bathroom renovation etc. Purchase cost: 390K

- 2 bed apartment Christchurch Dublin 8, built mid 1990s, around 650 sq ft, good condition, needed a bathroom renovation a few years later for 3500k. Purchase cost: 320K

Darc19

WhiteWalls wrote: »

I keep an eye on the property price register. Can anyone tell me where I could find examples of property prices around this time or even an idea of the prices.

Thanks

Take a subscription to the Irish Times and check the property supplement in the archives

You'll see pages of adverts with prices.

Muahahaha

iirc 2006 was the year that the bubble really inflated, house prices rose by 26% in that 12 month period alone. Years 2004 and 2005 saw rises of about 10% but it was 2006 that really did the damage. One example I know of from 2006 is a 3 bed red brick in Ranelagh sold for 1.6m, same house today is around 800,000 so it will likely never get out of negative equity.

Gumbo

Muahahaha wrote: »

iirc 2006 was the year that the bubble really inflated, house prices rose by 26% in that 12 month period alone. Years 2004 and 2005 saw rises of about 10% but it was 2006 that really did the damage. One example I know of from 2006 is a 3 bed red brick in Ranelagh sold for 1.6m, same house today is around 800,000 so it will likely never get out of negative equity.

I closed on an apartment in March 2006 at 224k and sold it in October 2006 for 317,500. That was the stamp duty limit at the time. 2006 was mad!

HeidiHeidi

I sold a small house in D8 in May 2006, about 900sq ft, with tiny north facing back yard and slightly bigger corner garden at the front, 2 bed - for 525K.


Absolute madness.


It started out at 450K, the bidding war went on for weeks.

I often wonder what became of the buyer, did they ever regret that? I have no idea how mortgaged they were.


I bought a bigger house nearby for an equally ludicrous price, but overall I did ok out of the move (having got roughly 7x my initial purchase price in 10 years).


I think that was the absolute peak of the boom, prices started to slide pretty much immediately after that, in Dublin city anyway.

bunny_mac

WhiteWalls wrote: »

I keep an eye on the property price register. Can anyone tell me where I could find examples of property prices around this time or even an idea of the prices.

Thanks

I bought a 1 bed apartment in Blackrock in 2002 for €280,000. I moved overseas in 2005 but decided to keep it and rent it out rather than sell. At that time 1 beds in the same complex were going for €425,000. Kicking myself now...

Geuze

Muahahaha wrote: »

iirc 2006 was the year that the bubble really inflated, house prices rose by 26% in that 12 month period alone. Years 2004 and 2005 saw rises of about 10% but it was 2006 that really did the damage. One example I know of from 2006 is a 3 bed red brick in Ranelagh sold for 1.6m, same house today is around 800,000 so it will likely never get out of negative equity.

Please note that this is not negative equity.

Negative equity always disappears as a problem, as the mortgage is repaid.

Negative equity: house price< mortgage balance

Capital loss: house price now<house purchase price



For example, I bought in 2005, and I sold in 2019 for less.

I was never in negative equity.

Geuze

HeidiHeidi wrote: »

I sold a small house in D8 in May 2006, about 900sq ft, with tiny north facing back yard and slightly bigger corner garden at the front, 2 bed - for 525K.

Jaysus.

HeidiHeidi

Geuze wrote: »

Jaysus.

Indeed!

Likeshirt

I had my house valued recently at 420k. The same valuer valued it at 430k in May 2008 for a remortgage.

A new record has been set for a former local authority house in fashionable Dalkey, Co Dublin with the sale of 49 St Begnet's Villas for close to €800,000

https://www.irishtimes.com/life-and-style/homes-and-property/dalkey-ex-council-home-sells-for-record-price-1.481661

That one is hard to beat id say

May 2005 so not quite the top of the boom.

Mad_maxx

Likeshirt wrote: »

I had my house valued recently at 420k. The same valuer valued it at 430k in May 2008 for a remortgage.

may 2008 was a good bit below the february 2007 peak , he over egged that valuation first time round

WhiteWalls

So as crazy a people say things are now, we're still a bit away from what happened in those times re prices. Good chat on newstalk yesterday about funds buying up estates

https://www.newstalk.com/news/normal-people-cant-compete-with-investment-funds-when-buying-a-house-in-ireland-1189384

screamer

House prices are going one way for a while. Labour shortages, material price increases and inadequate supply are all big factors. Combined with pent up demand. I certainly hope we don’t see a repeat of the last boom bust cycle with a generation of young people and their families left with albatrosses of mortgages around their necks.

positron

2005-2008 boom was also thanks to cheap credit. Banks were throwing money at anyone who is willing to sign the forms. Tracker mortgages, offset mortgages, 100% mortgages, 100% mortgage + allowance to kit-out the new place etc (not sure if that last one was real, recall something similar at least).

What's going to be the fuel for next big bubble beyond pent up demand (which can only takes things so far)? Post-covid inflation? Negative interest rates?

eringobragh

October 2007.....Froth

jayjay2010

I kept an old "Irish Property Buyer" magazine dated July 2006. Here's a sample of prices:

St Samson, Balgriffin, D13 - 2 bed apt starting from 345k

The Steps, Kilmainham, D8 - 1 bed apt starting from 340k

Cloragh Mills, Rathfarnham, D16 - 1 bed apt starting from 395k

Montgomery Court, Foley St, D1 - 1 bed apt starting from 425k

...Loads more if yous are interest :-)

smokie72

Bought the family home in August 2006. It was valued at €360,000. A house on the same street was sold for €420,000 in February 2007. In late 2011 another house was sold for €185,000. Recently a house was bought for €305,000 but needs work on it. So prices here (Dublin 22) are still below the 2006/07 levels.

That paper from 2007, looks like it could be today!
Gone crazy

whippet

I bought in 2004 - thankfully we bought based on what we wanted to repay on a mortgage rather than what the bank offered us.

it was a starter home in dublin and we paid €230k for it ... banks at the time offered us mortgages up to €700k ..... at the time our joint earnings were in the region of about €70k !!! so it was insanity and quite a few of my peers got sucked in and ended up servicing massive mortgages when the economy was in the pits.

Thankfully we were in a position to sell that property in 2012 for just over what we paid for it .. and bought the family home (outside of dublin) .... it was originally listed at €1.2m in 2009 and we got it for €335k ... the original listing was dreamer territory.

The flip side of it is that we bought this house in a real depression and there was no real demand. But I couldn't care less about it's value now - all that matters is the monthly repayments and how quickly we can clear the mortgage - i've no intention of moving again

L1011

My road appears to be slightly too low-value to be put in the display ads in the big papers - can't find any sales ads in either the Times or Indo archives to prove what I remember; but I distinctly remember a house of the same type as mine being advertised for 315k in 2007

I bought mine for 135k in 2012, albeit in very poor (but habitable after cleaning) condition. Got it valued after 30k+ of upgrade work for 275k in November, it could be back to the 315k level now easily I'd say.

ohnonotgmail

those prices in the Sherry Fitz ad aren't even being reached now. the apartments in Beacon South Quarter start at €495K for a 68m2 one bed. There is a 78m2 two bed apartment in a similar block for €395K.

ElBastardo1

ohnonotgmail wrote: »

those prices in the Sherry Fitz ad aren't even being reached now. the apartments in Beacon South Quarter start at €495K for a 68m2 one bed. There is a 78m2 two bed apartment in a similar block for €395K.

The Beacon still have issues and Banks aren't willing to always let them go through.

I bought an apartment in 2006 for 325k *sigh* and sold it a few years back for 200k *double sigh*. 2006 things were mental and alot of people who tried to get on the property ladder got fuc ked.

Muahahaha

ohnonotgmail wrote: »

those prices in the Sherry Fitz ad aren't even being reached now. the apartments in Beacon South Quarter start at €495K for a 68m2 one bed. There is a 78m2 two bed apartment in a similar block for €395K.

yeah thats what stood out for me as well, Ballsbridge red bricks are not getting 6-7 million right now as they were asking back then.

Plus throw in a log cabin in Cavan for 250k, the bank manager was probably saying sure you might as well take a mortgage for that too on top of your main house while you're here

I think in general houses sold in the 2006-7 period are going to be in negative equity for some time yet until inflation catches up. People who bought 2004-5 should be out of it by now. But it was 2006 when the bubble really inflated and the heavy damage was done, I remember that national property prices rose by 26% in that year alone and by more than that in desirable areas of Dublin.

The other thing is back then we didnt have the property price register to keep estate agents honest. Without it there was no transparency in the market, it allowed agents to give the impression houses sold for more than they did, thus inflating the market further for similar houses in the same area. There was no Property Regulatory Authority set up then either so their profession really was akin to the wild west for those inclined to play it that way.

Mad_maxx

whippet wrote: »

I bought in 2004 - thankfully we bought based on what we wanted to repay on a mortgage rather than what the bank offered us.

it was a starter home in dublin and we paid €230k for it ... banks at the time offered us mortgages up to €700k ..... at the time our joint earnings were in the region of about €70k !!! so it was insanity and quite a few of my peers got sucked in and ended up servicing massive mortgages when the economy was in the pits.

Thankfully we were in a position to sell that property in 2012 for just over what we paid for it .. and bought the family home (outside of dublin) .... it was originally listed at €1.2m in 2009 and we got it for €335k ... the original listing was dreamer territory.

The flip side of it is that we bought this house in a real depression and there was no real demand. But I couldn't care less about it's value now - all that matters is the monthly repayments and how quickly we can clear the mortgage - i've no intention of moving again

seems odd that a purchase in 2004 was worth more than when you sold in 2012 ?

2012 was the bottom and prices were at 2001 or 2002 levels by that stage

Mad_maxx

Muahahaha wrote: »

yeah thats what stood out for me as well, Ballsbridge red bricks are not getting 6-7 million right now as they were asking back then.

Plus throw in a log cabin in Cavan for 250k, the bank manager was probably saying sure you might as well take a mortgage for that too on top of your main house while you're here

I think in general houses sold in the 2006-7 period are going to be in negative equity for some time yet until inflation catches up. People who bought 2004-5 should be out of it by now. But it was 2006 when the bubble really inflated and the heavy damage was done, I remember that national property prices rose by 26% in that year alone and by more than that in desirable areas of Dublin.

The other thing is back then we didnt have the property price register to keep estate agents honest. Without it there was no transparency in the market, it allowed agents to give the impression houses sold for more than they did, thus inflating the market further for similar houses in the same area. There was no Property Regulatory Authority set up then either so their profession really was akin to the wild west for those inclined to play it that way.

the PSRA are pretty toothless

Geuze

Muahahaha wrote: »

I think in general houses sold in the 2006-7 period are going to be in negative equity for some time yet until inflation catches up. People who bought 2004-5 should be out of it by now. But it was 2006 when the bubble really inflated and the heavy damage was done, I remember that national property prices rose by 26% in that year alone and by more than that in desirable areas of Dublin.

Don't make the common mistake of confusing negative equity with capital loss.

Negative equity: house price<mortgage balance

Capital loss: house price now<purchase price

Any house bought in 2006 is out of negative equity by now, as the mortgage is repaid.

I lost 50-70k on a house sale, but was never in negative equity.

Darc19

Remember that most mortgages from 2004-2008 were trackers and there was tax relief on mortgage interest.

Today's prices may still be 20%-25% below the peak, but the money paid over 30 years on a 2.5% mortgage would be higher than what peak 2006 buyers were paying.

L1011

Muahahaha wrote: »

I think in general houses sold in the 2006-7 period are going to be in negative equity for some time yet until inflation catches up. People who bought 2004-5 should be out of it by now.

I would doubt that after 14-15 years of a mortgage that there are many still in negative equity (you'd have about 30% of the capital paid off by now on a 35 year mortgage) - that term specifically means owing more than the house is worth at a point in time.

Plenty of people are well below the purchase price of the house still though, even more so when you consider stamp duty (if applicable, due to the FTB exemption then) and other purchase costs which were quite high back then.

Eire Go Brach

L1011 wrote: »

I would doubt that after 14-15 years of a mortgage that there are many still in negative equity (you'd have about 30% of the capital paid off by now on a 35 year mortgage) - that term specifically means owing more than the house is worth at a point in time.

Plenty of people are well below the purchase price of the house still though, even more so when you consider stamp duty (if applicable, due to the FTB exemption then) and other purchase costs which were quite high back then.

Don't forget about 100% Mortgages. Depends on the area and property type. Those that bought between 04-07 are being forgotten about. I bought a 2 bed APT in 2006. It's been very challenging for us to trade up. Decent money coming in. Been Lucky as we got a LTV exemption. No way could we save 20%

Probably out of negative equity the last year. The pandemic helped with that.
Bought in 2006: 296. Tracker mortgage of 275. Rest was my savings.
Sold for 205:
Ow the bank 183

22k That will cover the moving bills maybe with a few k over. We are effectively starting over. I'm just putting it down to cheap rent for the last 15 years.