Property price drops

a thread with sale prices 20% above asking price would be 200 pages long by this stage

Agreed, wishful thinking I'm afraid, not that I blame anyone for hoping prices will reduce.

Ah, it's starting to happen. But it will be slow. I'd better put on my body armour now and be ready for all sorts flying at me😊

The cost of redoing an old house now is prohibited by material and labour costs. There is a reason that there are big sites shut down temporarily in every major town and city. I think the bump in the road is here until inflation is curbed and supply lines get more normalised. Ordinary Joe is the one who will be so tightly squeezed that he will feel it the most, and there are alot of us ordinary Joe's out there! I think our spending will reduce considerably this summer/winter. Then again there are still alot of people doing well, but we are all interconnected through capitalism, so it will be interesting times ahead. My biggest worry is this government doing something so stupid that it puts the working middle classes in big bother, and boy ó boy are these clowns capable of it.

Builders are already stopping! You can get lads to do work but they want huge money and materials just adds to that. I think the demand will ease over the coming months as people just won't be willing to pay the high costs of getting work done. We've seen it before. It's not an ever lasting upwardly spiral, eventually prices just become too high and people can't or won't pay. There will always be a few with money but for the vast majority of first time buyers, funding and finance has a ceiling. People just won't be willing/able to fork out money to meet high costs. The old saying will ring true again that nothing cures high prices like high prices and I think and this is based purely on what I see around me and talking to people (not that I know anything) that we are around that stage now. It's not the same as the last time but certain things are similar.

That's true, and everyone's ceiling is different but this time our wages include úsc, our inflation rate is big and interest rates are only going one way it would seem, add to that the enormous cost of energy and fuel. The actual value of peoples money is being eroded and that will feed into assets. I don't expect a crash but I do think the massive percentage rises in housing gained over the last two years will drop back over the next year or two. Just an opinion.

Your post reminds me of a time I went to a breakers yard many years ago and we were trying to come to an agreement on the price of a starter motor. The owner wanted 120, I said I'd give him 80 for it. His reply was "the price is the price" and with that I heel turned and walked out to the gate, as I was getting into the car, a shout came over the wall of "100 even". I'll go 90 i said, came the reply "fair enough". The price was indeed the price........ Until it wasn't! Sometimes we over complicate things too. If people walk away, even from new builds, I would be of the opinion that prices would normalise much quicker. But as you say, the cost is the cost. As I've already said, prices come down, it's not a never ascending spiral up.

The difference there though is that you didn't need to buy that starter motor to house your family, and if you didn't buy it would be even more expensive the following day. If inflation and cost of living increases will reduce the amount of buyers and also with a finite number of cash buyers, we still have the state via the councils buying up everything they can get, to house the burgeoning numbers of homeless,

This is certainly my experience at the moment. Houses in walk-in condition are still running offers before the first viewing, but properties requiring even a little bit of work going much more slowly. Properties requiring significant work are being nearly ignored except by builders. Saw one house go recently for just over €700k when the average for 2nd hands in the area is closer to 575. But it was pristine and well extended. Brand new properties in the area go for €725k. So that buyer probably felt they were doing well.

There's alot of talk of mortgage interest rates going up this year and next.

From the sellers point of view it's in their interest to sell their property before this occurs, as it will be harder to sell at a high price then.

Affordability will be a problem for buyers either way.

Interesting times surely.

I believe someone on this forum gave the explanation before.

The FF/FG government want to give away state land for private developers to build on. The councils like DCC, which are controlled by SF/PBP etc., want to keep the land in state hands as a condition of allowing building.

Result: Gridlock