Panic as the amateur ‘wannabe’ property moguls of Ireland finally realise they were sold a pup, and their erstwhile friends in the banks come looking for their money.
The few conversations I had with people over the Christmas, those who had been ‘investors’ and those who ended up with property they now can’t shift or even let, there was what I took as the beginnings of a begrudging acceptance of the reality and depth of the problems facing the Irish property market over the short to medium term.
I think it is still at the fear stage. Clicked on fear and then scrolled down to submit and when I checked my vote it had obviously scrolled down at the same time to panic!!! Doh! . Although maybe it’s trying to tell me something!!. Anyway fear but I wonder how long it will take for desperation to set in, especially when all the Christmas/ heating etc bills come in?
I think we are slipping into the fear stage. However, I think some people are still in the denial stage, thinking that NAMA will save the day.
Anecdotal. A friend of mine sold her house in Dublin 20, a two bed townhouse and I know she lost approx 40K on it. Bought in early 2003 for 267K and sold in December 2009 for 225K. Is now waiting to close on a 4 bed for about 300K.
Another friend bought in Meath and is still under the illusion that they are not in negative equity as house asking prices in their estate are still above the price they paid for their house. I still think some people don’t have a clue.
EAs still using the phantom bid tactic (and it backfiring against them)
Vendors still refusing to admit that the Irish property scene has had its day (still wanting Hollywood prices for dogboxes)
but worst of all, our VI Government increasing the woes of this and future generations by sadistically (utterly disgraceful) attempting to reward those who have caused this disgrace (and will unflinchingly do so again when the opportunity is created for them in the future)
It’s worse than that Jim…I’d say all the NAMA, the bluster from Lenny, the endless on-message “positivity” from the vested interests, has pushed a whole huge herd all the way back out of Denial and to Anxiety.
The amount of raving nonsense I had to listen to over Christmas…
Seems to me that until an emotion is overwhelmingly widespread it is still correct to say we are in the previous part of the cycle. Since there is still so much Denial out there, I don’t think as a national consciousness it can be said to have tipped into Fear yet (assuming we are just talking about property - if we are talking about the economy as a whole, maybe fear. But as we all know, property is different and many sane people can in the same breath admit the country is bankrupt but not that property prices will fall…which is denial).
Most people I know have been sighing a breath of relief and basking in the fact that since prices are down 40% or so they won’t fall much further. Pointing them towards yields and empties etc (which they ignored back a few years ago when I pointed it out to them) still results in them starring blankly at me or just dismissing it
Denial so? Although there may be an element of fear keeping them in denial if that makes any sense. If they actually copped on that further falls were to come they’d shit themselves
If the jobless figures in the US are favourable Friday and there is talk of a break in the trend for the first time in two years then the idea that a recovery is only around the corner here could delay the bottoming out process.
There are not many outside the financial community and the pin who realise how badly a strong recovery would kill us. We could become a country composed of relatively well off people who work for multinationals who can pay their bills and another part of society who are totally dependant on domestic consumption or directly/indirectly dependant on tax revenue/borrowings.