Current Public Sentiment towards the Housing Market


#3501

It seems the biggest factor driving house prices is the lack of a functioning market on secondhand homes.

The current government / bank regulator policies, which in turn seem to reflect electoral / social pressures, are to go slow and softly on those in buy to let arrears and serious other arrears.

With decisive action, can’t policy makers FORCE banks to act on buy to let / 2 year arrears borrowers?

Does this even get debated in the Dail?


#3502

Newstalk had a voxpop on a Dublin street earlier in light of news that Dublin property prices have risen 22% in the past year.
Consensus was that things are bleak for anyone wishing to buy and “oh no here we go again”


#3503

The huge difference is that the new crop of McSavvys can’t borrow anymore.


#3504

Hello pinsters! waves Haven’t been around in a while.

The main difference now is the absolute limit on mortgages is far less than back in the 00s. Purely anecdotal I know but I’m hearing of mortgages from 2 to 3 times salary - in the old days it was more like, what, 5?. Banks now take in account your ability to pay (going through your current account with a toothcomb, judging you on things like creche fees, etc) and are also very wary of taking part-time second income into account. Plus it takes age. So we’re a long way from the “how much would you like?” mentality of then.

Currently bidding on house and its fairly crazy out there, but so far it’s not the banks’ fault. Of course give it a yet and more people screaming…

P.


#3505

Really?
Are they repossessing?
Banks are issuing lots of “new credit”, in the form of loans moving from original terms to interest only or even no-repayment.

If you’d wide-scale repossession and debt enforcement, those repossessed would immediately be out of the purchasing market and with reduced spending power as they’d be servicing the neg-equity parts of their loans. Their houses would be on the market, so supply would be up, and house prices would be down. Rental demand would increase, but with lower spending power, and some current renters would be buying houses.


#3506

This!! I hold the banks and their puppeteers in the government entirely responsible for the madness in Dublin at the moment. It’s a vile attempt to use property tax to fund their less severe budget, to get NAMA out of a hole and use soaring house prices as evidence of a recovery in the economy when there really isn’t.


#3507

Just to be clear, I’m talking about availability of credit and nothing more.

P.


#3508

I am sort of the opinion that the government are currently “talking up” the market while dis encouraging the banks from lending to ordinary joes in order to suck in lots of foreign investment and cash buyers to bail out Nama and the banks before letting the whole lot go down the shitter again - but this time having robbed far less of the middle class.

A bit on the anecdotal side, I was told by an EA in a social setting the other day that things have really quietened down in the last month. This of course was due to the weather and was a good buying opportunity for me as things wouldn’t be being bidded on as much as they will be come September !


#3509

Well I thoroughly blame the banks, 7 months sale agreed on forced sale and the mortgage company only looking at it now… Guess what? Not happy at sale agreed price and recommending refusal. Valuation submitted to them 30k more. Mortgage co and our bank have ties so fe***** wins and we are left dangling again.


#3510

So how do they do that?
I’d love to have an honest chat with the market, would you?
Where can I talk down to the market?
I’ll stand in line if I have too.
I’ll give this market a piece of my mind.
That’ll keep it quiet for sure.


#3511

I think in your over exuberance to be a smart arse you are confusing “chatting up” with “talking up”.
I am pretty sure you are well capable of at least trying to “talk down” to anyone who’ll put up with you.


#3512

#3513

i292.photobucket.com/albums/mm9/Coles-01/DaftieMyhomeietrends_zps4c13ef15.jpg

Google Trends showing declining interest in property.


#3514

But not repossessing **is **a form of additional credit, at least until the debt gets written off as a bad loan.

In any case, the original point was whether one could blame the banks for the current market situation: I would say that while they are not repossessing they have some blame.


#3515

Property prices tipped to rise up to 20pc this year

Increases so far this year mean values are on course to jump by up to 20pc in the capital, a leading economist said.

And across the country as a whole, property price rises of 10pc for the year have been forecast by Alan McQuaid of Merrion Stockbrokers.

He said the official figures from the Central Statistics Office (CSO) showed there was now strong evidence of a recovery in the housing market.

"Based on the figures for the first five months of 2014, we now see an average rise in Irish house prices of around 10pc for the year as a whole, with Dublin posting the biggest increase, of 15pc to 20pc.

“This compares with an average increase in house prices of 1.8pc in 2013, the first positive change since 2007,” he said in Merrion’s quarterly ‘Economic Outlook’.

independent.ie/business/personal-finance/property-mortgages/property-prices-tipped-to-rise-up-to-20pc-this-year-30425812.html


#3516

I think this would/should be difficult without wage inflation.


#3517

Charlie Weston special that one… Joan is going to sort the market out everyone. Don’t worry


#3518

For twentysomethings, saving money is a waste of effort - Telegraph

Sometimes when I speak to people of my parents’ generation, they ask me if I worry about being able to afford a place of my own in London. I don’t, in the same way that I don’t worry about being able to afford a yacht on the French Riviera. It would be nice if it did come off, but realistically it’s not something I’m ever going to be able to do under my own steam.

I can see where the boomers’ concern comes from. Every day there’s a story along the lines of house prices in the capital jumping by £80,000 in a few months, or house price inflation rising to its highest level in a decade, or the prices of homes in the commuter belt increasing at a faster rate than those in the centre. The average house in the capital costs around 20 times my annual salary. Even with the Government’s Help to Buy Scheme, which allows people to buy a home on a reduced deposit, the figures are overwhelming.

telegraph.co.uk/men/thinking-man/10940531/For-twentysomethings-saving-money-is-a-waste-of-effort.html


#3519

What are the implications of this? How will/does London/New York etc retain people on modest wages to fulfill all those teaching/nursing/service type jobs etc?

Or will things tick over as normal? As people opt out of expensive city life there’s probably a queue of inward bound people to take their place. All of this applies to Dublin to some extent.


#3520

People will rent and/or put up with long commute for as long as they work there, then bail out for retirement. There’s no point in clogging up the centre of the capital with unemployed old duffers.

Can’t remember what they’re doing with mandatory pensions, but that would help keep rents down as a proportion of gross income whilst providing for an eventual exit.

FWIW one of my grandparents rented throughout her retirement (in SE England but not London). I don’t remember her ever complaining about it.