The Housing Crash is Over!

[Benz]

relax, everything's going to be okay, the Irish Independent has called the bottom of the market.

€1.6m house is first auction sale of year - National News, Frontpage - Independent.ie

and so has the parent company of the €50 million website myhome.ie, namely the Irish Times

First-timers who've done their homework can get real value - The Irish Times - Thu, Mar 26, 2009

phew! Thank God that's over

50% drop still to come. Start buying when the price of the house is equivalent to 14 times the annual rent (assuming a relatively benign interest rate environment).

[jpc]

They are two days late with that one.

[locke]

What I'm noticing is a massive spread in equivalent properties. You can see two houses in the same road and not old enough that the condition of the house is going to be a major factor where one is 40% less than the other.

We might be nearing the bottom in terms of sale price. But estate agents prefer asking prices and they have a long way to go.

[Digout]

That article from the Times was a few weeks ago.

[Question R24U]

50% drop still to come. Start buying when the price of the house is equivalent to 14 times the annual rent (assuming a relatively benign interest rate environment).

Is this a real way of assessing "value" or sarcasm?

To rent my place (per daft.ei) is more than the monthy mortgage repayment, even though the property is worth less than the mortgage. There is something not adding up.

How is "value" assessed?
1. A calculation based on average industrial wages is irrelevant since, those on the average industrial wage holder would probably not get a mortgage.
2. The annualised rent model is a moveable feast.
3. The price of neighbours' property can't be used since no one is buying.
4. Gold and equities relfect other factors and can't be used as guide.

[Yosser]

What I'm noticing is a massive spread in equivalent properties. You can see two houses in the same road and not old enough that the condition of the house is going to be a major factor where one is 40% less than the other.

We might be nearing the bottom in terms of sale price. But estate agents prefer asking prices and they have a long way to go.

Nowhere near the bottom. Unemployed people can't buy houses and we have an increasing number of them.

[Digout]

Prices will not hit the bottom until we see growth in employment. Currently, 1000 are losing their job every day. Salaries are being cut. The only way property is going over the next 12 months is down.

Who cares anyway? we need to get over this property thing. How many patents were granted to Irish based firms or people over the last month? Thats what we really need to be paying attention to.

[jpc]

Prices will not hit the bottom until we see growth in employment. Currently, 1000 are losing their job every day. Salaries are being cut. The only way property is going over the next 12 months is down.

Any who cares anyway, we need to get over this property thing. How many patents were granted to Irish based firms or people over the last month? Thats what we really need to be paying attention to.

You hit the nail on the head Digout.
Some idiots are still hankering for money without effort.
All gone I'm afraid.

[sandar]

its only just begun, at them moment lots of second hand houses are ebing sold, and some number of these are being sold by the banks whove reposseed them, this means that its likely the people who used to live in the houses are not buying another one, so the cycle is not activated again, and demand remains low, it also means that xconstruction industry wont resume.
Secondly new jobs losses are still being announced, thats likely to mean more repossesions in the future, which will increase supply further and do little for demand, it is a good time for first time buyers though I guess.
Secoindly the banks having bailed out, are now in a position to be less severe in granting mortgages, and thats probably having an impact(page 1 of why the abilout was nescessary)

[Wakeupcall]

Prices will not hit the bottom until we see growth in employment. Currently, 1000 are losing their job every day. Salaries are being cut. The only way property is going over the next 12 months is down.

Any who cares anyway, we need to get over this property thing. How many patents were granted to Irish based firms or people over the last month? Thats what we really need to be paying attention to.

I agree...