IT: House prices plummet as tighter mortgages deter buyers

Front page of the Irish Times.

Here’s the website of the company mentioned
denisfinnltd.com/properties. … le&grp=res

There is another story about this in the IT
ireland.com/newspaper/financ … 43696.html
but subscription is required

Are we moving from “Denial” to “Fear” yet? Headlines like this in the “paper of record” should move things along nicely…

The Denis Finn Ltd finished products are way, way, way overpriced. Obviously they are building in significant margins at these price levels. I’ve viewed one or two of their developments in Howth, the product is pretty good but honestly not worth the asking price levels. Friends of mine who sold their business last summer were looking to buy one of their developments but had to walk away as the developer was bumping up the price as result of ‘posssible’ phantom bidders. Makes you wonders.

In the words of Country Tom, “developers can’t afford to drop prices any more”.

There will be a lot more Denis Finns before this show is over.

(Struggling to remain glee-free here!!) :blush:

I have to confess I feel no glee at all about this. It’s not because of being right or anything like that, it’s the utter regret that it came to this, that it was foreseeable and that we still marched into a marsh regardless.

That’s the killing thing about it: it was avoidable, and now we’ll all pay the price for it. Sure I don’t have a mortgage, or negative equity or a depreciating cost-increasing asset…but that doesn’t mean I’m happy that things are going wrong now because my position was always that the long run cost was going to be high, the impact on the economy would be terrible and it would be a tragedy if we didn’t prevent it.

We didn’t prevent it. Glee is not the word. Utter regret and disillusion might be better.

thepropertypin.com/viewtopic.php?t=6422

And there’s more bad news from the UK for sellers in the €1 million + bracket.

and

The boom was squandered, that is the biggest tragedy.

Why was this published on a Saturday of a bank holiday?
Is it cause there is a much smaller readership on Bank Holidays. I know I wouldn’t have been reading Irish newspapers this weekend only those bastards in Ryanair left without me. I was 4 minutes late and the bastards never made any call to me over the speakers.

I agree - the economic downturn affects us all. Sure I may be able to buy a house at a sensible price sometime in the next five years. But in the meantime my pension is taking a battering because all of the stocks it is invested in are depressed because of the economy being in the crapper. Meantime my employer is less likely to give me big raises or bonuses and it’ll be harder for me to move to another company because businesses aren’t hiring as much.

Therefore, send not to know
For whom the bell tolls,
It tolls for thee.

Amen Brother Whizzbang. Amen. |O :frowning: XX

A political party and Taoiseach who weren’t whores of the construction industry could have prevented it so easily.

A Sunday Independent whose sole purpose wasn’t extolling the cleanliness of Fatarse O’Reilly’s anus could have prevented it so easily. [1]

RTE could have prevented it so easily.

Many people could have stopped it, but they didn’t, and it’s happened. A generation have sold their lifetime wage earning capacity away to “get on the ladder”, for rubbish houses in appalling locations.

[1] I’m a freeborn citizen of a sovereign republic, and I call no man sir at the behest of an alien monarch. For Sir,Duke,Earl, Marquis, etc, I always substitute fatarse. It works surprisingly well…

But the reality is that when the warning signs were apparent , those who were willling to point to the need for corrective action were pilloried from all quarters.

The real cost of the fall out as we know will be immeasurable and while
one may not feel sorry for some of the operators that go to the wall however good operators who have spent years building up good working
practies and niches will also fail because of the near total collapse of work.

Yes we know the seriousness of the overall situation and it is no cause for celebration - almost everyone will suffer.

I’m referring to the individual case mentioned above in the context of Max Headroom’s post.
If you’re running a business and you refuse to face the realities of the market then tough luck.
There is still a market out there for realistically priced property. If a developer chooses to ignore it, let him join the dole queue.

daft.ie/agent.daft?id=1294&p=rpstwssx

Make cheeky bid and you might benefit from his cash flow problems.
I don’t know why developers don’t have no reserve auctions of multiple properties to establish what the market clearing price is and get the market moving.

Sections of the market (the selling section usually) manage to be in greed, denial and fear all at the same time.

I have been watching Denis Finn since the beginning of the year. I couldn’t see how they would survive but didnt expect them to go this quick. In this situation will the properties be sold at any price?

What is likely to happen is that the main lending bank involved here will call up one of its favourite clients with deep pockets and say “I’ve got a portfolio of properties you can buy at a knock down price, I’ll even lend you a lot of the money to buy it”, then the transaction will take place away from the eyes of the public, and the bank will have exchanged a loan to a dodgy client for a loan to a less dodgy client. We have seen one example of this so far and I would guess that this is the way these situations with small developers will mostly play out. Eventually the individual properties will be sold off at cheaper prices but with a tidy profit involved.

But surely there must come a point where even the most deeply-pocketed client will have so many properties sitting unsold, unrented and starting to crumble at the edges (as stuff does if you don’t use it) that they will balk at taking on more? Surely the point must come where the banks have to have US style auctions or rock-bottom disposals? (and I apologise for calling you Shirley).
This is virgin territory for us, isn’t it? Have we ever had banks being lumbered with huge amounts of former customers’ wasting assets before?
db.

This is both the most read and most e-mailed story on ireland.com over the last 24 hours. “Denial”'s days are numbered methinks.

Calina - you nailed it.
We were handed a golden ticket and if anything, the real economy is worse now than it was when I left back in 98. I was home at christmas every year since and everyone seems employed hanging each others curtains or some other ridiculas shit. The “real jobs” (by that I mean taking raw material or skills and processing it into something fit for export) have dramatically REDUCED in my area of the country for sure.