A number of people on the Pin are posting that properties in Dublin are now achieving prices in excess of their asking prices and we have all now seen some a small number of EA’s increase asking prices.
In my own experience I only know of one property that did achieve above asking recently and it was 9 Ashdale Avenue, Terenure, Dublin 6, it had an asking of 395K and I believe it sold for c. 430K. myhome.ie/residential/brochu … -6/1798254. I know of several recent sales where the achieved prices were still below their asking prices by about 10%.
So can people please post their own experience of this achieving over asking price phenomenon? and please include experiences of where properties are still going sale agreed under asking.
EA’s need not respond, real buyer experiences only would be my preference!
The asking price is pretty much irrelevant for individual houses.
If someone advertises their house for €100k it sells for €200k it could still be a poor result for the vendor and good for the buyer if other places are selling for €300k
The crash continues. The bubble is gone and it is staying gone.
The fundamentals are still in the toilet, 90% of households earn under 75k pa and falling, there is no credit - it’s down 90% from peak with no end in sight, unemployment is very sticky, the IMF are running the show, we have 250,000 non-holiday home empty properties, we are the most indebted people in the world, there have been no repossessions, 31% of AIB BTL’s are in arrears, we have 3 or 4 more austerity budgets to come, disposable incomes have to fall more, NAMA is sitting on a lot of property and land…
…I suspect that list could go on all day.
On the upside: EA’s are reporting a lot of viewings and houses on Shrewsbury Road are down to €5m a pop.
There are no rising prices. There are only pockets of greater delusion. Chillax.
Nobody has seen any Estate Agents increasing asking prices in Dublin except in the very odd exception. How do I know? Because Collapso.net has only recorded a very small handful of price increases in South Dublin since the start of the year. South Dublin is supposed to be the area experiencing an increase in demand but those few increases pale in comparison to the hundreds and hundreds and hundreds of price cuts.
There is an important asymmetry between asking price reductions and asking price increases, though. If you put a property on and you can’t find a buyer, you lower the asking price - what else are you going to do? If you put a property on and there’s demand such that if you could to go back in time and list the property again you would put it on the market for a higher asking price, you probably won’t go to the effort of rebuffing offers now to see what would happen if you did revise the price upwards. You’ll probably just take the offer above your asking price and be done with it. So collapso is not at all useful for ups-versus-downs, its value comes from trends in the downs.
In terms of wanting only “real person” responses, not EA ones, I would remember selection bias. Anyone who buys now will have less reason to come to a site like thepropertypin and see what people are saying about the property market. They’ve made their bed and are now lying in it - if only to stop the cognitive dissonance headaches, many will not want to hear analysis like Larry’s.
FWIW, I spoke to an EA during the week and he said that it varies hugely by segment. One property (a family home in Dublin 9 IIRC) had three people bidding on it and it had recently gone above asking price. From what I could tell, he had no plans on upping the asking price. (Seamless link back to first point!)
A perfect example being the Allsop auction.
Bids exceeding the low reserves, but still coming no where close to what private sellers are asking for similar properties.
It seems to me that some EAs are changing their strategy on asking prices. They are putting low asking prices on properties in the anticipation that the sale price will exceed the asking. Thus able to say that prices are on the up.
IMO no matter what the asking price is buyers should always offer a substantially lower price.
A temporary rise in a specific stock or the market as a whole.
A sucker rally occurs with little fundamental information to back the movement in price. This rally may continue just long enough for the “suckers” to get on board, after which the market or specific stock falls.
Thanks for the reply Ronan. For what it’s worth here’s a graph of the ratio of decrease/increase in Dublin 6 over the last couple of years. Seems to be a reduction in the number of price decreases, but a look back over the years seems to suggest that there is a seasonal effect at play. It’ll be interesting to see how it plays out.
I know of one, asking price 415k sold for 460k. Was very well priced to begin with, and the EA said as much. There were multiple bidders who really really wanted the house as it had a huge west facing garden and was in walk in condition.
A few I’ve heard of:
27 Beechwood Avenue - asking 550k, sold 650k
34 Merton Drive - asking 395k, sold 445k
68 Orwell Park - asking 1m, sold 1.25m
34 Windsor Road - asking 995k, sold over 1,000k
9 Ashdale Avenue - asking 395k, last bid in of 430k
39a Johnston Park - asking 185k, sold 310k
10 Carrickmines Avenue - asking €675k, last bid in I heard of (on the Pin) was €715k
There is enough demand for property at the current levels. We will have to wait and see how further income tax hikes and a property tax will effect demand later this year. However, by then we’ll be heading into our 7th year so i would expect that levels wont drop significantly following this in 2013.
This Posting is about Dublin Properties going for above the asking levels. I merely pointed out that stock is selling at the current levels, which it is. This Lot will sell too prob for around 245k. The housing market is in a healthier state than it was 12 months ago. Prices are still soft and will decline further but stock will still sell and at a faster rate as prices are reflecting fair value.
One of the most significant Known-Unknowns about purchasing a property right now is; just how much will the owner be hit next year and for every subsiquent year of ownership for property tax?
I suspect many if not most of those purchasing in the market at present are showing little by way of rational buying patterns in their decision, not far removed from the madness of the bubble years, as they are blindly comitting to an unknown future financial burdon.
Secondly, prices in a market seeing very low levels of activity by historical standards (bubble fueled highs excluded) are not considered accurate barometers of ‘fair value’.
IMHO, I would agree with the view of several other posters on this site, the market has not yet bottomed, the vested interests are playing exacty the same game as during the bubble; attempting to spin the inacrruate line about “shortages” and given the economic fundamentals of the State once we do hit the bottom it will be a long time before there is any significant real price appreciation.
It’s just that I have a problem when someone states that a property sells for over the ‘asking price’.
It’s meaningless.
If a property started off asking €1m in 2006 and had to chop it’s price to €300k by 2012 and only now went sale agreed at €310k, would that have been deemed to have achieved ‘in excess of the asking’ ?
I don’t know but people often refer to asking prices continuing to fall without considering that fact that 12 months ago houses were selling for well below asking price but are now selling for closer to (if not above) the asking. That would suggested achieved prices have fallen by far less then the falls in asking prices, if at all in some areas.
I guess nobody will really know what’s going on until we see the database
