A property is worth what someone will pay for it

It’s been a long time now since I heard that little piece of pool hall wisdom. It used to be a common refrain when the absurdity of prevailing house prices was pointed out to someone.

Well, it deserves resurrecting right now.

It is worth as much as someone will pay for it. And how much are people willng to pay. A damn sight less than asking prices.

So we know what they are worth. A lot less. So get cutting.

In Ireland, we tend to flip this pearl:

A property is worth what someone is willing to sell it for.

Which is not the same thing at all. So you have developers stalling, financiers bawling, sellers hardballing, and buyers not falling (for it).

You are, of course, entirely right that a clearing rate is a-coming. But is could be like the West Clare railway.

I think I’m turning Japanese , I think I’m turning Japanese, I really think so.

I do, house “value” is embedded too deep in Irish peoples minds, without price transparency there will be no cold slap in the face to wake people out of that fantasy unless the bank forces them.

This is a reaction which needs a catalyst. A bank collapsing. 0.5% ECB hike every two months until rates reach 8%. Stock market crash. Or similar.

Otherwise we really are going to turn Japanese. Slow and painful decline. Irish people don’t understand reason or logic. They need it slapped into them by cold hard reality.

I maintain that - with no glee whatsoever on my part - a good sharp, biting (but relatively short) recession will do this country the world of good.

It takes two to tango. https://www.barbandgreg.com/images/Emoticons/dance5.gif

Both buyer and seller have an interest in a specific house, since a house is not a commodity to a large degree (new builds & apartments aside perhaps). Many sellers are content enough not to sell, and many are under no obligation to do so.

So some houses will fall in price. Not necessarily the one(s) you or I want. Let’s see. No rush :slight_smile:

mortgagebrokers.ie/blog/inde … ty-prices/

its only worth what somebody will pay for it!

You miss the mark a bit there.

The price will fall whether you sell or not. That is the salient point of the OP.