The more I think of the new CB lending rules the less likely I think it will effect most of the Cork City market, which is 3 beds.
Average 1,000 st ft 3 bed semi Cork city suburbs - Blackrock, Ballinlough, Ballintemple - has gone for 310K last 18 months or so. Either 310K for relatively walk in condition or 270-280K plus refurb costs to come.
Taking the 310K figure.
Under old rules, you needed 31K deposit min (310K@10%)
Under new rules, you need 40K deposit min (220K@10% + 90K@20%)
Assuming you only had the bare 31K, you are set back 9K or say up to 1 year more of saving up. Many will have had higher than the 31K so won’t really be to affected. So I’m not expecting prices in this bracket to fall. Especially with zero supply.
Of course if you go to the 4 bed market you’re looking at 400K for semi-d or 500K for larger detached. Here the deposit already built up is the key variable:
400K 4 bed semi-d
Under old rules, you needed 40K deposit min (400K@10%)
Under new rules, you need 58K deposit min (220K@10% + 180K@20%)
500K 4 bed detached
Under old rules, you needed 50K deposit min (500K@10%)
Under new rules, you need 78K deposit min (220K@10% + 280K@20%)