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About LinkBacksIm wondering if People think prices will recover this year or next? According to Hooke and Macdonald they will recover next year! :mrgreen:
Im wondering if People think prices will recover this year or next? According to Hooke and Macdonald they will recover next year! :mrgreen:
Stagnant or worse for the next decade
No chance of increase in the next two years - too much unsold stock. In the longer term it will depend on employment, wages and interest rates. The household formation trend is strong so housing need will be building up the longer the present situation continues.
There will be a few bargains around as some people will have to sell and will drop back to the prices of several years ago if they need to to get a sale.
There are many who live on cloud cookoo land and believe that Bricks&Mortar is always an appreciative investment and as such any blip in the property market will be short lived.
It appears to be a uniquely Irish phenomenon in that they believe there is such a strong desire to own property that collectively the national psyche will not allow a crash to persist beyond a year or two.
This is of course nonsense. People cannot get their hands on the crazy amounts of money that banks etc where doling out at multiples of income that where quite frankly obscene and astonishingly irresponsible.
Thats the crux, house prices will drop to previous levels in line with the amount of money people can raise to buy them. This will be a drawn out process as slowly the realists begin to outnumber the deluded.
'Hello. My name is Inigo Montoya. You killed my father. Prepare to die.'
Inigo Montoya.
Property is over priced
Property inflation in Dublin over the last 10 years is up to 700%
It is not unique to Ireland - it is not disimilar in the UK and US. The same thing happened under Thatcher in the late 80s and it took 3-4 years to recover there, although much longer for people who bought marginal properties.Originally Posted by Leftfemme22
Spending money on a house is much less stupid than spending money on a car that is unsaleable junk after 5 years. What is worrying is the trend to individuals expecting every increasing amounts of domestic living space when energy costs, impacts are increasing and availability is reducing.
They'll fall in real terms till about 2010 or 2011, when they will have reached 2001/2 levels in real terms.
That would indicate that prices would have to drop by about 18% this year, about 12% next and about 5% the one after that. By the time of the 2012 election the correction in housing will be over and we will be in an era where prices rise by about 1.5% in real terms.
Private profit for public gain!
Only one way for it to go so but where will it settle? Because, when it does I reckon there will be another shagging upswing straight away. While the value is falling slightly now (or at least not as much heat is in the market as has been the case), rental prices are also competitive so there's a good chance that if people get their s*elves together over the next two to three years (at a maximum) then they could have substantial deposits for the next house-buying wave.
*sigh*
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How did you calculate that?
They are anything but stagnant. Developers are slashing the price of new-builds and second-hand homes are reducing their prices 100+ per week. This is all part of a market correcting itself.
Private profit for public gain!
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