Surely house prices reach a minimum at the top of the interest rate cycle,
as that is when mortgage repayments are at their highest,
so demand is lowest when interest payments are at their highest.
Likewise, house prices reach a maximum whe interest rates are at their lowest, because at that point, mortgage repayments are at their lowest,
so demand is highest when interest payments are at their lowest.
or can someone explain the relationship between interest payments and demand - is it not a downward sloping demand curve, with interest payments as a proxy for price?
I have to say I simply don’t see it myself, I have been looking at a no. Properties on daft for the last 2-3 years and most of them have not reduced their asking price at all. I mean if I was looking to put in an offer now I would be looking for 200k off a 600k asking on these houses.To me the Market is all over the shop, anybody else experiencing this ?
Yes, but is there any chance we can stop the “houses will be free” next year crap. Lost of people are still in good jobs, taking home 6 figure salaries with 6 figure deposits.
To these people 600k next to the rights schools is cheap, particularly when they know others are paying more in the UK and elsewhere with a lower (relative) quality of life, expensive schools and less craic (it is all about the craic).
Yes, Longford is worth 50p but that was always the case. As for the rest of the country the market says otherwise.
OK, lots of Dublin “couples” and quite a few individuals. Not all of who bought in the boom or who are ready to move again.
You would think the country is on its uppers. As someone not living in Ireland I was really surprised with the “on the ground” experience of Dublin. I talked the country down and got out. I now think that the pendulum is swinging too far the wrong way.
Hey ho, I will lay my chips down and take my chances. We can’t be keyboard warriors forever!
Whatever the actual number I would doubt very strongly that those on €100k+ make any meaningful difference to the market. Relatively speaking they are in the market for only a tiny handful of properties.
And that, I believe, is figures for taxable units, so in some cases it includes husband and wife (where they are jointly assessed). In which case the number of individual earners earning more than 100k is lower.
Exhibit B. A ‘site’ being sold subject to planning for 90k across the road from Exhibit A. This ‘site’ would only be suitable for someone who had an eligibility for planning, and as such is not on the open market. How in the name of God can this bit of land be worth more than it’s agricultural value when the demand for it is almost completely non-existant? Wicklow landowners are going to discover that restrictive planning regulations are a knife that cuts both ways. https://images.myhome.ie/pictures/properties/residential/2/1/9/409912/IMG_1471_m.JPG?v=1
So, Median Salary in Dub is nearly 40k - 2 professional people = 80k = mortgage of 400k.
There are a lot of these people I reckon. I know a lot of people like this (not me unfortunately… yet).
Only thing is they probably already own a property, like most of my friends.
I’d love to see a breakdown of the income of current FTBs in Dublin
Where are you getting 4x joint income as a guideline from?
A married individual on 40k takes home €2,813 a month. A 360k mortgage for 30 years at 4% (pretty optimistic) requires €1700 a month. That’s 60% of one of their incomes just to keep a roof over their head - when is this couple supposed to have children?
Interest rates at 7% would occupy almost 100% of one of their incomes.