Latest Daft.ie Quarterly Report is out and makes for interesting if unsurprising reading.
2013: After six years, time to build again?
One potential headline grabber is prices in South County Dublin appear to be stabilizing (the only area that did not have a YOY fall in asking prices) which tallies with what I’m hearing anecdotally on the ground, whether this is a result of a last hurrah thanks to the ending of MIR is a good question. I personally think that the increasing inequality in our society is going to underline and reinforce class divides even more firmly in the future, i.e. people with money will be jostling for houses in the areas they deem as safe, good services, good schools etc
On the other hand there are always peaks in troughs on the way up and on the way down in any bubble/crash so maybe this is just the dead cat playing out in SCD?
Of more interest to me personally are the drops in Cork, circa 8% YOY drops in asking prices in Cork City (over 13% in the County area), even allowing for the removal of MIR I will on average be €10k better off renting in 2013 versus 2012 assuming same/similar rent and mortgage payments. There is a definite tightening of supply occurring at the moment in what are considered ‘good areas’ but what effect the supposed changes to repossessions has in March is anyone’s guess, will there be more supply? How quickly etc.
Interesting year ahead, I think both I and my mortgage application form will sit on the fence until late Q2 at the earliest.
Edit: I should probably add that I am not for a moment suggesting a halt to price drops or that there will be a V shaped 'recovery' in prices etc. not with the arrears problems, emigration, further austerity budgets etc. I'm just thinking out loud re the year ahead more than anything.