Softening house market?

Look, I don't care. You're trying to go off down some rabbit hole based on some nonsense that you think mortgage rates won't rise because demand deposit accounts are at zero percent return.

I don't place any weight on your waffle. Whatever you are doing, you are not in a position near the money. Maybe some day you will get there. But you're not getting any more of my time

"If you want to look at the balance sheet someone else posted, you can see that the answer in relation to where they get their longer term funding from. That is there - not to take in a euro and lend it out - but to have it as a capital reserve. Unlike deposits, that cannot be withdrawn on Monday."

This is up there with Brian Lucey recommending Anglo sells the customer deposits to get out of their spot of difficulty.

So according to you they're all financed by capital!

So using your 'logic' if a bank wants to issue an extra €1 of long term lending the bank has to raise €1 of capital.... In your world, why do they waste their time with deposits? All those fiddly branches and customer facing staff, seems an awful waste of resources, in your world.

Never mind all this financial mumbo jumbo. Will someone please just tell me that house prices are crashing to help me justify spending 50% of my income on rent over the last 15 years. Please and thanks.

Can't see it crashing, compare 2007 with 2022 and things are a lot more sensible on credit and the supply side isn't great.

When you look back at 2007 you had crazy lending standards and an economy that had been propped up by the same credit fuelled bubble.

Fast forward to today. Lending standards have kept a lid on credit. Factor in a continued undersupply of new housing. All while the economy is close to if not at full employment.

IMO it's employment that will determine big swings. Current uncertainty around interest rates might slow thing down but it's mass unemployment that is needed for a big house price fall - there's just too much pent up demand otherwise.

No.

Soften = yes

Slowdown = yes

Crash = no, as there is no excess supply, and there is loads of latent demand

I think we are seeing the start of a housing crash. It's going to drag on for a good few months, possibly years.

I also think we are heading into a corporate debt crisis and a sovereign debt crisis due to the rising interest rates and high debt loads.

All this is due to crazy money printing since March 2020 by the central banks who thought they could print their way out of trouble like in 2008.

The stats don’t lie. Lots of decreases going on

The western world deserves an almighty financial crash for the hysterical lockdowns and restrictions. Those restrictions and lockdowns were put in place to satisfy a few oddball types and the laptop classes who could work at home. It will be great when Facebook lays them off by the thousands.

   Leading mortgage lender hikes variable and fixed rates by up to 2 percentage points   

More softening on the way?

That's the crux of it. There are thousands with cash waiting who are just outside affording a +350k house due to lending limits.

Every price reduction with be snapped up by those on the next lower rung of the ladder. I said it before and I'll say it again, a few extra % on interest rates will not deter those who are spending big bucks on rent.

Q3 showing asking prices dropped

Looks like prices are officially softened

Is that all you took from the article?

"The 1.3% decline in the third quarter shouldn’t be taken as a sign that the housing market will now see persistent price falls."

"The stock of homes listed for sale is now 16,300 – up from the 11,200 trough at the beginning of the year, albeit still down on the 21,000 average in the three years preceding the pandemic in 2020."

"On this point, pent-up demand in the Irish housing market remains strong."

"Looking forward, we expect that Irish house prices will grow by 6% through 2022 and by 3% in 2023."

That is a pretty massive increase it must be said.

We could see a very quick reversal of demand in the next few months. If people were stretching themselves to the limit to buy a house, then adding a few hundred a month on top will surely soften demand.