Irish Property Market chat II - *read mod note post #1 before posting*

I'm sale agreed at the moment. I value the house at around what we're paying so I'm happy to go ahead, but reading all the doom and gloom has me a bit worried to be honest. We're fixing for 5 years and will hopefully beat any further increases. We don't plan on ever moving again, property is ideal, great location, etc.

I think we’ll know which way it’s going by the summer. I doubt investment funds will be very active going forward but who knows what level of council purchasing there might be. People need houses but it’s first time buyers that drive the market and they may take their money and their skills elsewhere. We’ve yet to have a normal selling/buying cycle post covid and if landlords are allowed to exit en mass after this ‘winter emergency period’ from April and buyers are holding off amid interest rate increases and cost of living pressures the only way is down. Essentially we’re at this current price level through bizarre and no longer present covid circumstances and external pressures from excess money printing which found its way into assets. Unless something changes and asset bubbles are re-inflated to sustain prices housing is going to deflate to a point where salary’s and savings can prop it up.

Best of luck!

If you’re comfortable paying the rate you’re currently being quoted for 5 years, go for it. It seems like the days of extremely low interest rates are gone for the forseeable, but hopefully when your renewal comes up, you’ll be paying less!

And if you’re comfortable with the current value of the house and it’s going to be your forever home, even if there is a massive crash, if won’t matter too much as you won’t be in negative equity and stuck and unable to move.

On the other hand, in December I went to view a house in Citywest, and there were offers for about 470K against an asking price of 440K. It wasn't the end of it, I didn't like the house and did not put an offer in, but the price may have gone up since.

In the UK mortgage rates have increased very fast, and are probably going down already, but here it looks like banks have been cautious and have avoided applying the same increases. Rates have gone up only slightly here, if I'm correct, and it's possible they will only raise a further 0.5% until the situation in Europe stabilizes.

Of course this is my guess, which means nothing, but it's more than possible that neither Irish banks nor FF/FG want house prices to drop significantly, and they're doing everything in their power to sustain these high market prices.

The next phases of some new developments seem to have kept prices steady, but I've noticed small increases, rather than reductions. The second hand market may be impacted if there are job losses here, or other factors like landlords exiting the rent market, but again my guess is that it will take much more than that in order to see huge changes to house prices this year.

I was looking at a property last week that I knew from the property register had an asking price 15%+ under market value for the street. A friend went to have a look and said there was quite a few people there and I’d say there’ll be a bidding war starting.

However I was keeping an eye on two other properties on Auctioneera the last few weeks that just weren’t reaching their asking price. Similar properties sold for a bit more than those asking prices last year. They’ve now disappeared and haven’t moved sale agreed. Wonder if the vendors pulled them.

But two particular houses were advertised few months ago and now they are not advertised but 100% still for sale and not sold or sale agreed.

Another house was for sale for good few months then it dissappear sign and all, now for sale sign back again in the front garden but not online.

Strange.

True daft put their price up.

Only government money will be buying them. Private work will be a dead duck in my opinion.

I hear its going in the opposite direction and that all construction materials will be falling over the next 6 months as demand for work like extensions has fallen off a cliff for construction work as its just too expensive and throw in that by the end of March interest rates for any loans for such work will have gone up by at least another 1% ergo the raw materials used in construction are in less demand. Where are you getting your info from?

Really then why has construction in all areas contracted for 7 of the last 8 months in 2022? New builds are only ramping up in the last 18 months and with that the work on new builds has slowed to a crawl and with the lack of available property to buy over the last 4/5 years people have chosen to get work done in their existing dwelling as the choice to move was simply not there. So extensions have driven construction costs a hell of a lot more than new builds.

It could be higher it definitely wont be lower that's for sure. 250 a month extra that is some amount of extra to pay for a mortgage.

You'd imagine that the retail rate would be minimum 2% above the base rate even more for Ireland where repaying is optional even for members of government.

The banks are lending out deposits and we have had record savings during and after Covid. They don't want a house price crash either so it's an interesting dynamic. The gap between their deposit rates and mortgage rates is still pretty healthy.

even Dermot Bannon has said prices are going down

No all concrete products and stone from 1st March, levy not included in that as that is not due until April I think.