N Ireland house prices down 18.6%!

ballyblack

From todays Citywire;

"Northern Ireland is already shaping up to be one of the biggest casualties of the UK house price crash (for this is surely now rapidly turning into a crash). The Northern Irish house price boom was always one of the most perplexing, especially given the region’s relatively low level of wages. No amount of cheap money from the banks or cheap flights from the rest of Britain could justify this level of house price of inflation; some 37% in 2006 alone.
Today’s figures from the Nationwide underline just how much the Northern Island bubble has already burst, with the annual rate of house price deflation now running at 18.6%. And there is little cause for future optimism, with the
average cost of a house in Northern Ireland still above the UK average. There is, one fears, still a long way to go before prices reach a level at which they can stabilise"

Full article here;

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=307059

Sigur_2

Thank goodness. Some house prices are ridiculous in Belfast, especially considering the average wages for most jobs is far below that of other major cities levels.

36square

You may have seen reports of a survey by Abbey recently which showed that is would be 24% cheaper to rent a house in NI for 25 years instead of buying it with a mortgage. Needless to day the difference was far more than anywhere else in the UK which underlines just how daft our house prices are. It's down to witless "investors" who stick all their money in property even though they'd probably get a better income by putting it in a bank account. They just expected prices to go up for ever. It's nice to see some of them at least getting their fingers badly burnt.

DavidN83

And prices will drop a whole lot more - they are far, far too expensive when you take into account what people in NI actually earn.

ballyblack

showed that is would be 24% cheaper to rent a house in NI for 25 years instead of buying it with a mortgage

Yes!

Two points to consider;

Renting a house is beholden to a landlord and a 24% saving is not worth that!!

Bye the way, what about the equity on a house after 25 years, have you forgot about that? Methinks buying is the long term way to go!

tara747

ballyblack wrote: »

Yes!

Two points to consider;

Renting a house is beholding to a landlord and a 24% saving is not worth that!!

Bye the way, what about the equity on a house after 25 years, have you forgot about that? Methinks buying is the long term way to go!

Mmm - long term it is desirable to own a home, but buying in NI at the moment is utter madness. Surely you would concede that? I am waiting and continuing to save till the market bottoms out and I would advise any other FTB to do the same. It'll save us tens of thousands over our lifetimes. Would you really advise your sister/brother/son/cousin/best friend to buy now and be in instant negative equity?

Can I ask all the homeowners here how much they paid for their houses in terms of income multiple?

Thanks in advance.

tara747

p.s. I think that these falls are fantastic news! If they continue (and how can they not, look at all the evidence), it will mean a whole generation of young people - me included - not having to borrow 9x salary to buy a house.

:j

What is everyone else's view?

hnisc

After buying last summer this news is devastating to me and I hope it stops soon Fair enough I dont plan to move yet but I dont want to have to stay in the house for years until they rise again :mad:

Sigur_2

hnisc wrote: »

After buying last summer this news is devastating to me and I hope it stops soon Fair enough I dont plan to move yet but I dont want to have to stay in the house for years until they rise again :mad:

Last summer was probably the worst time to buy. :rotfl::rotfl:

Artofdookie

Fantastic news....

belfastgirl23

On the bright side you probably wouldn't be able to sell your house anyway given the current market state so the 18% drop doesn't really matter does it