Houses Price drops €100K in a day

[GJG]

The screaming headline in the Evening Herald tells the sob story, sorry human interest story of a young family whose new house is now valued at €595K instead of the €700K they bought it for.

I can't quite work out why this is a tragedy.

The couple - clearly people who need a family home, not investors - have the same house they bought and the same repayments they budgeted for. They may have some difficulties if they needed to move soon, but that doesn't seem to be the case. By contrast, some who couldn't afford their own home before can now do so. This social good far outweighs the minor problems for others.

Why is this treated like a calamity?

[kerrynorth]

The screaming headline in the Evening Herald tells the sob story, sorry human interest story of a young family whose new house is now valued at €595K instead of the €700K they bought it for.

I can't quite work out why this is a tragedy.

The couple - clearly people who need a family home, not investors - have the same house they bought and the same repayments they budgeted for. They may have some difficulties if they needed to move soon, but that doesn't seem to be the case. By contrast, some who couldn't afford their own home before can now do so. This social good far outweighs the minor problems for others.

Why is this treated like a calamity?

It's all to do with expectations. Have not seen the article myself yet.

[Colmog]

Because it makes a really good, hysterical "Bad News" headline so beloved of sections of the media.

You are of course entirely correct. I have expereinced both a drop in home value and a rise...neither has any great impact on me in real terms.

I bought my property based upon what I could pay and intended to stay there in the longer term. This kind of fluctuation only really impacts upon speculators...not those investing in a home for the longer term.

Every home owner may expereince fluctations over the period of ownership or a mortgage.

[Defeated Romanticist]

The screaming headline in the Evening Herald tells the sob story, sorry human interest story of a young family whose new house is now valued at €595K instead of the €700K they bought it for.

I can't quite work out why this is a tragedy.

The couple - clearly people who need a family home, not investors - have the same house they bought and the same repayments they budgeted for. They may have some difficulties if they needed to move soon, but that doesn't seem to be the case. By contrast, some who couldn't afford their own home before can now do so. This social good far outweighs the minor problems for others.

Why is this treated like a calamity?

Newspapers are in the business of selling newspapers.

[Colmog]

I can of course understand their frustrsation and even dismay at having borrowed €100k more than they would have to pay now...though it will all even out over time in all likelyhood.

[Ard-Taoiseach]

The screaming headline in the Evening Herald tells the sob story, sorry human interest story of a young family whose new house is now valued at €595K instead of the €700K they bought it for.

I can't quite work out why this is a tragedy.

The couple - clearly people who need a family home, not investors - have the same house they bought and the same repayments they budgeted for. They may have some difficulties if they needed to move soon, but that doesn't seem to be the case. By contrast, some who couldn't afford their own home before can now do so. This social good far outweighs the minor problems for others.

Why is this treated like a calamity?

It's all to do with expectations. Have not seen the article myself yet.

kerrynorth is the first respondent to a sensationalist negative story, I'm not surprised.

How did the house fall in value 'in a day?'. Did they buy the place yesterday? If not, what does 'day' refer to in the title?

Can they afford the mortgage repayments? That should be the primary concern, not the value of the house. Values are notional indicators driven by supply and demand and not really indicative of the sum value of the bricks and mortar.

If its a family, they will be buying a home, not an investment fund. That is why the value is not really important, as long as people can afford mortgages, the price is unimportant.

And I'd question the headline as well, if its from the Evening Herald. Tabloids like the Herld exaggerate details.

[Aindriu]

Houses are not actually worth anything until you come to sell them so this is a typical case of media scaremongering.

I wish I could afford to buy a house for €0.7M!!!!

[Munion]

Someone should send that couple & the Evening Herald reporter to an adult nightclass for Economics 101.

[stonethrower]

The screaming headline in the Evening Herald tells the sob story, sorry human interest story of a young family whose new house is now valued at €595K instead of the €700K they bought it for.

I can't quite work out why this is a tragedy.

The couple - clearly people who need a family home, not investors - have the same house they bought and the same repayments they budgeted for. They may have some difficulties if they needed to move soon, but that doesn't seem to be the case. By contrast, some who couldn't afford their own home before can now do so. This social good far outweighs the minor problems for others.

Why is this treated like a calamity?

Well yes of course if they don't plan to sell the house anytime in the near future, no big deal. However if they had to sell the house for whatever reason, emigrating, new job in another part of country, break-up etc...then it would be a real problem as they would potentially have 105k less than they paid.

[kerrynorth]

Is there any site that has the Evening Herald article? I am coming up nothing on google.