Activity Coming Back Into the Market?

[HouseBuyer]

independent.ie/business/iris … 65061.html

WHEN Mark Elliott began marketing his new apartments at Herberton in Dublin’s Rialto, close to the canal, last weekend, he did not know what to expect.

In the event, some 320 different groups of people walked through the show apartments and 18 put down booking deposits. “Before this, we would have been lucky to have about 25 though and at best two or three deposits.”

Elliott believes that price cuts of between 30 and 40 per cent from the peak are getting people interested now. “People are getting more comfortable, it’s not hard to make the argument that buying is better value than renting at the moment,” he says.

Several other developers have also reported better than expected sales in the past few weeks. Developers, it seems, were slow to recognise that prices had fallen.

Now there is realisation that if it is not at the market price, they can forget it. Rhatigan’s rent-to-purchase scheme near Heuston Station in Dublin has already had 32 people sign up for it.

Meanwhile, in the second-hand homes market, estate agents also believe that activity has picked up in the €400,000-€700,000 bracket, though they caution that it is still far below levels of the same time last year.

One Lisney office last week, for example, got offers on four homes. Many, however, were still too low for vendors whose views may not yet be as realistic as those of some developers. However, a glance at the graphs on www.treesdontgrowtothesky.com makes it clear that further price reductions are on the cards and most vendors do not believe we have reached bottom.

But it does seem that the combination of reduced purchase prices and low interest rates is enough to have at least a minority consider purchasing. With the economy collapsing and a mini-budget due at the end of the month in which a property tax or the abolition of stamp duty are possible, it seems the majority are still likely to be waiting in the wings.

[Sidewinder]

One Lisney office last week, for example, got offers on four homes. Many, however, were still too low for vendors

Many of the four, eh*? They got in four lowball offers and this is a sign that we’ve reached the bottom. This article is just plain dumb.

I’m fed up with this nonsense now. The message just isn’t sinking in at all. We’re nearly three fecking years from the peak and the vast, vast, vast majority of the population, the meeja and the political class still have only one single obsession in their tiny pointy little brains: “Get on the ladder quick!”

I’m starting to have some serious contempt for the vast majority of the people of my country. That just can’t be right. Where did we go so badly badly wrong as a nation? What the feck is wrong with these people?!?!

*Which makes perfect sense in Discworld Trollish, of course.

[IDONTKNOW]

I honestly think that some time before the end of the year there will be a “dead cat bounce”, when some people will look at the price compared to the price at peak and see value. It won’t be enough to scare most into buying , but I bet it will be well advertised

[Vulcher]

@HouseBuyer

Music man wants to keep his old shed - Independent.ie

WHEN Mark Elliott began marketing his new apartments at Herberton in Dublin’s Rialto, close to the canal, last weekend, he did not know what to expect.

In the event, some 320 different groups of people walked through the show apartments and 18 put down booking deposits. “Before this, we would have been lucky to have about 25 though and at best two or three deposits.”

Elliott believes that price cuts of between 30 and 40 per cent from the peak are getting people interested now. “People are getting more comfortable, it’s not hard to make the argument that buying is better value than renting at the moment,” he says.

Several other developers have also reported better than expected sales in the past few weeks. Developers, it seems, were slow to recognise that prices had fallen.

Now there is realisation that if it is not at the market price, they can forget it. Rhatigan’s rent-to-purchase scheme near Heuston Station in Dublin has already had 32 people sign up for it.

Meanwhile, in the second-hand homes market, estate agents also believe that activity has picked up in the €400,000-€700,000 bracket, though they caution that it is still far below levels of the same time last year.

One Lisney office last week, for example, got offers on four homes. Many, however, were still too low for vendors whose views may not yet be as realistic as those of some developers. However, a glance at the graphs on treesdontgrowtothesky.com makes it clear that further price reductions are on the cards and most vendors do not believe we have reached bottom.

But it does seem that the combination of reduced purchase prices and low interest rates is enough to have at least a minority consider purchasing. With the economy collapsing and a mini-budget due at the end of the month in which a property tax or the abolition of stamp duty are possible, it seems the majority are still likely to be waiting in the wings.

Inane…feeble minded dribble…thats what the above amounts to…some Ea Buddies of his have been feeding him a right old lump of bullshit…and he ran with it
Pityfull…

[Mark]

These sort of articles have come out every spring since the bubble burst, and with each passing year they get ever more desperate.

[Calina]

@Sidewinder

I’m starting to have some serious contempt for the vast majority of the people of my country. That just can’t be right. Where did we go so badly badly wrong as a nation? What the feck is wrong with these people?!?!

It’s not unique to this country. Some of what happened in Iceland and the US is comparably bad.

@Sidewinder

*Which makes perfect sense in Discworld Trollish, of course.

Not wanting to get into a debate on trollish linguistics, but if we’re talking trollish, he’s suggesting three of the offers were too lowball. As I recall, the counting was one two many lots, right? I haven’t got my copy of Men At Arms to hand but I am pretty sure that’s where it’s discussed.

Actually, come to think of it, someone borrowed it and I never got it back. This is a good excuse to go to Amazon.

[CaveCanem]

@Sidewinder

:roll:

One Lisney office last week, for example, got offers on four homes. Many, however, were still too low for vendors

Many of the four, eh*? They got in four lowball offers and this is a sign that we’ve reached the bottom. This article is just plain dumb.

I’m fed up with this nonsense now. The message just isn’t sinking in at all. We’re nearly three fecking years from the peak and the vast, vast, vast majority of the population, the meeja and the political class still have only one single obsession in their tiny pointy little brains: “Get on the ladder quick!”

I’m starting to have some serious contempt for the vast majority of the people of my country. That just can’t be right. Where did we go so badly badly wrong as a nation? What the feck is wrong with these people?!?!

*Which makes perfect sense in Discworld Trollish, of course.

You have to remember that many people were making a good living selling property. That they were shafting buyers or that it is not sustainable does not bother them. Many homeowners liked the idea that they were getting “rich”. It’s an alluring drug. So expect articles like this to continue.

Given the level of drop in sales, it is reasonable to expect some increase (Do you think everyone has got commonsense over the last few months?)This will get trumpeted. Harder economic and banking realities are likely to trump this. You can’t run an economy selling houses to each other.

I agree with you that purchasers should get honest information from mainstream media, but that wouldn’t pay the bills.

[carlovian]

Wow. 4 offers made to one office.

The market has turned and im going to spend tonight queing outside the ea office to get that value first thing tomorrow before the stampede.

This article is similar to other articles citing an increase in phone calls to ea offices as proof that the bottom had been reached.

Weve only just begun folks !!!

[Gatelodge]

@IDONTKNOW

I honestly think that some time before the end of the year there will be a “dead cat bounce”, when some people will look at the price compared to the price at peak and see value. It won’t be enough to scare most into buying , but I bet it will be well advertised

We have been speculating about a “dead cat bounce” for the guts of two years now and with a string of hairshirt budgets now imminent I don’t see where this bounce will come from and I predict the exact opposite happening with an acceleration in the slide before year end.

[Sidewinder]

@Calina

Not wanting to get into a debate on trollish linguistics, but if we’re talking trollish, he’s suggesting three of the offers were too lowball. As I recall, the counting was one two many lots, right? I haven’t got my copy of Men At Arms to hand but I am pretty sure that’s where it’s discussed.

Yup, that’s right. One, two, many, lots!

So, which three Pinsters were bored last week and stuck in some lowball offers just out of boredom. Come on, own up ye young rapscallions!

[superman]

One Lisney office last week, for example, got offers on four homes. Many, however, were still too low for vendors

“I’ll offer you €50 for those 4 houses”

[Minerva]

have been following The Pin since last Jan when we sold our place and decided to rent but have to admit I am defo one of the 4 who placed an offer with Lisney Main office last week - and surprise surprise it was lowball - 20% less than the recently decreased price - naturally it was rejected almost immediately but I do still expect to hear back from them probably in the next fortnight … qui audet adipiscitur !!!

[freddie59]

House in Waterford on at €295k (and it was grossly overpriced at that - needs about €25k of remedial work). Dropped to €230k. EA rang and asked would I take it for €200k on Thursday last. I told him it was still too expensive at €200k, but we would view it. Hasn’t even returned the call about a viewing.

[yoganmahew]

@Minerva

:x have been following The Pin since last Jan when we sold our place and decided to rent but have to admit I am defo one of the 4 who placed an offer with Lisney Main office last week - and surprise surprise it was lowball - 20% less than the recently decreased price - naturally it was rejected almost immediately but I do still expect to hear back from them probably in the next fortnight … qui audet adipiscitur !!!

You bring a song to my heart Minerva. Just when I think I am shouting at the dark, a voice shouts back! May you who dared, win.

[usmhot]

Elliott believes that price cuts of between 30 and 40 per cent from the peak are getting people interested now. “People are getting more comfortable, it’s not hard to make the argument that buying is better value than renting at the moment,” he says.

Really?
Rents officially falling faster than property prices. A veritable bonanza of rental properties available!
Irish people must be still as stupid as ever if they’re buying the ‘buying is better than renting’ argument even now!!!

[PopeBuckfastXVI]

In the event, some 320 different groups of people walked through the show apartments and 18 put down booking deposits. “Before this, we would have been lucky to have about 25 though and at best two or three deposits.”

Have I missed something?

3/25 = 0.12 = 12% Conversion rate
18/320 = 0.05625 = 5.625% Conversion rate

So a halving of the customer to sale conversion rate is a sign of the recovery?

GTFO lazy hack parrot scum journo

[jacobmarley]

@Mark

These sort of articles have come out every spring since the bubble burst, and with each passing year they get ever more desperate.

Agreed, more of this type of s*hite in yesterdays Sunday Bus Post:

First-time options are improving
Sunday, March 08, 2009 By Michael Devane
A property market battle has intensified over the last few weeks, with developers making further drastic price cuts and the banks offering mortgage packages aimed specifically at first-time buyers.

The entire property market and, in particular, the first-time buyer sector has been in the doldrums for many months now. The last major flurry of activity at the lower end of the market occurred at the start of 2008,whenpriceswere cut on a number of new homes schemes, in a bid to stimulate activity.

But the credit crunch, the banking crisis and a massive rise in unemployment have all made potential buyers nervous, and despite improved affordability and reduced interest rates, many of them are still reluctant to commit to a purchase.

Last week, new figures revealed that unemployment stood at over 354,000 - or 10 per cent - at the end of February and, if the present rate of job losses continues, the Live Register could reach 450,000 by the end of the year.

All too aware of this uncertainty, developers realised that further price cuts would be necessary to kick-start the new homes market and get unwanted, empty units off their books. Since the start of 2009, developers such as P Elliott & Co, Rhatigan Commercial Developments, Maplewood Developments and Jackson Homes have made price cuts of up to €150,000 on apartments in their developments.

These cuts have resulted in a small but steady number of first-time buyers engaging in the market, and estate agents across the greater Dublin area are reporting increased viewings of both second-hand and new build properties.
According to the latest permanent TSB/ESRI house price index, national house prices fell by 9.8 per cent in the year to the end of January. The average price paid for a house in Dublin and outside Dublin in January 2009 was €346,274 and €222,649, respectively - down from€351,096 and €233,984, respectively, in December 2008.

But there is a general consensus that these figures do not reflect fully the extent of the property slowdown, and most agents agree that prices in the greater Dublin area have come back by at least 30-40 per cent from the market peak. The result is that, in many cases, it is now cheaper to buy than to rent, a fact which is leading some young people in rented accommodation to consider a purchase.…

But Grehan believes that those who are in a secure job and in a position to buy should realise that ‘‘the choice of properties will most likely not be there later in the year’’.

Grehan said stock levels were down 50 per cent year on year, and argued that, as the year progressed, the stock of properties was definitely going to tighten.

sbpost.ie/post/pages/p/story … qqqx=1.asp

[spqr64]

With the journo doing the maths by next week we could have a shortfall of property instead of the “overhang”, glut, swamped in the fecking stuff running into hundreds of thousands we have currently. Can we complain about this bad journalism to anyone or should we just email the gobshite “wot wrote it”?

[ewd3]

we should expect a flurry of activity
Some people who have been holding out and some canny bargain hunters are looking to get back in not wanting to miss the bottom…
a few posters around here have taken the plunge,
however the mass of stock available means it’s unlikely that anyone who wants will regret holding fire

[gaius]

Activity Coming Back Into the Market?

Does running away count as “activity”?