Current Public Sentiment towards the Housing Market


#3661

This is really bad news for those living in rent pressure zones.

The knock on effect is that the government will struggle to justify Dublin as a rent pressure zone if rates are rising only 2 to 3% p.a.

And if the rent pressure zone falls away, Landlords will be able to align their rents with current rates.


#3662

It will be interesting to see if Eoghan Murphy extends the time for the RPZ limits to be in effect, I would be quite surprised if he (or whoever is in the hotseat at the time) doesn’t extend.


#3663

Fun times ahead - IMO it will be near impossible to extend the limit if Dublin were to fall outside the definition of a RPZ.


#3664

Surely this is exactly how they will justify the extension of the Dublin rent pressure zone. It’s clearly working!!!


#3665

A major effect of the Central Bank rules has been to compress the Dublin market into the 200-400 K. price. Almost half the properties (2298 of 4783) are priced between 200K and 400K. The bell curve is totally skewed. Below that level, there is nothing except shoebox apartments. Above that, there is a steep drop in supply and little improvement in quality until you get over 1 M. . 600 - 700K will get you a 3 bed semi in OK locations. A lot of people will “settle” (i.e. swallow their bitter anger) for a decent house in Kildare/Meath but their commute be increasingly hellish as developers get back in business.

The bell curve has a long tail but there’s almost nothing over 3 Million. Quite a contrast to the boom years when practically everything around Ailesbury Rd. and Killiney was asking double digits. Most houses today are as overpriced as they were in the boom but, in terms of price per sq. ft, the finest houses in Dublin are about the same price as a basic 3 bed semi in a decent location. At least, after our next crash, we won’t need NAMA 2.0 to deal with massive loans for family homes. 8DD


#3666

The big ease…

December saw a drop of 0.1%

rte.ie/news/business/2019/0214/1029575-property-prices-cso/


#3667

It is November 2006 and the early days of the Current Public sentiment…affair

M Keenan writes an article saying Dublin prices are falling by up to €4,500 a month.

March 25th 2019 and M Keenan is still writing articles. This time claiming that Dublin prices may be falling at €7,500 a quarter, since December 2018.

The prices of average second-hand homes have largely frozen for the first quarter of 2019 throughout Ireland with most counties showing prices unchanged since the beginning of the year.

The big freeze in house prices in 2019 is being attributed to property prices in many areas hitting the Central Bank-enforced mortgage lending ceilings.

Other factors include a lack of cash buyers in some locations, and a proliferation of new homes in other areas affecting the values of existing properties.

Meanwhile, increased red tape means there has been a slow-down in applying for mortgages and selling homes.

While static prices were the norm - including in Cork, Galway and Limerick cities - prices dipped in some areas.

In Dublin city, the price of a three-bed semi is down 1.75pc (€7,667) since December, while the same home in the south of the county is down 1.8pc (€7,500).

The biggest fall in prices was seen in Louth, where they dropped 3.6pc (€7,500) thanks largely to extensive new home developments.

However, most parts of the country saw prices stagnate in the first quarter of the year, including in Carlow, Cavan, Clare, Waterford, Wexford, Kilkenny, Laois, Offaly and north Co Dublin.

https://www.independent.ie/business/personal-finance/property-mortgages/big-freeze-in-house-prices-blamed-on-central-bank-rules-stifling-the-market-37946912.html