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Economic downturn wipes 50pc off value of homes
sarkin1
Posts: 283 Forumite
House Price Crash Ireland
LARGE detached family homes in the capital have halved in value in the downturn.
Estate agents admit four- and five-bedroom detached properties in Dublin are now only fetching 50pc of their 2007 prices.
This means upwardly-mobile couples who shelled out an average of €1m at the height of the boom years are now sitting in a house worth just €500,000.
The Irish Auctioneers and Valuers Institute (IAVI), which represents auctioneers around the country, says that houses nationally are now worth 40pc less than at the peak.
Connacht has seen the smallest drop in house prices but even these are dramatic. The average two-bedroom townhouse in the region has fallen in value by 27.7pc.
Things are much worse in Dublin for struggling homeowners who are seeing themselves plunged further into negative equity as prices have plummeted by half. But this is all good news for buyers with cash today.
The IAVI annual property survey released shows that new two-bedroom townhouses in Dublin are down 36.3pc from their peak. Three-bed townhouses have fallen by 36.9pc and one- and two-bed apartments are down 42.8pc and 42.4pc respectively.
Also in the capital, three- and four-bedroom semis are down 35.3pc and 37.6pc and four- and five-bedroom detached houses are down 42.6pc.
Reductions in the Dublin second-hand homes market are more stark. One- and two-bed apartments are down 46.9pc and 47.8pc; two- and three-bed townhouses have fallen in value by 39.7pc and 41.3pc; and three- and four-bed semis have dropped by 41.4pc and 44.8pc.
The price drops in the rest of the country are also substantial. Three-bed semi-detached homes are down 37.4pc, 31.6pc and 32.8pc from peak prices in Leinster (excluding Dublin), Munster and Connacht respectively.
The IAVI figures, which are based on sale prices achieved, are a more accurate indicator of the market than other surveys, such as the recently released DAFT report which relies on advertised asking prices. The DAFT report put house prices nationally at 30pc lower than peak, pointing to a gap between asking prices and sale prices.
The IAVI survey also reports few sales in 2009 -- a year that was described as "perhaps one of the bleakest years the market has ever experienced in this country".
However, there are signs of recovery with agents reporting an increase in viewings towards the end of last year. Auctioneers in the Dublin area reported enquiries and viewings increased by a quarter and the number of sales closed was up 9pc.
IAVI president Aine Myler called on the Government to fast-track the planned national register of property prices to provide for transparency in the market and to restore consumer confidence, citing a possible bottoming out of the market.
"These annual results are in line with our expectations for 2009 and consistent with our belief that the average residential property values would decline 40pc to 50pc from peak to trough," she said.
"The survey results indicate that the market floor is close, if we have not reached it already."
If any Bulls can post a link to their prediction of money priniting pre 2008 I take my hat off to you, if you cant then your an idiot that got very, very, lucky.
Look like Brit was right
LARGE detached family homes in the capital have halved in value in the downturn.
Estate agents admit four- and five-bedroom detached properties in Dublin are now only fetching 50pc of their 2007 prices.
This means upwardly-mobile couples who shelled out an average of €1m at the height of the boom years are now sitting in a house worth just €500,000.
The Irish Auctioneers and Valuers Institute (IAVI), which represents auctioneers around the country, says that houses nationally are now worth 40pc less than at the peak.
Connacht has seen the smallest drop in house prices but even these are dramatic. The average two-bedroom townhouse in the region has fallen in value by 27.7pc.
Things are much worse in Dublin for struggling homeowners who are seeing themselves plunged further into negative equity as prices have plummeted by half. But this is all good news for buyers with cash today.
The IAVI annual property survey released shows that new two-bedroom townhouses in Dublin are down 36.3pc from their peak. Three-bed townhouses have fallen by 36.9pc and one- and two-bed apartments are down 42.8pc and 42.4pc respectively.
Also in the capital, three- and four-bedroom semis are down 35.3pc and 37.6pc and four- and five-bedroom detached houses are down 42.6pc.
Reductions in the Dublin second-hand homes market are more stark. One- and two-bed apartments are down 46.9pc and 47.8pc; two- and three-bed townhouses have fallen in value by 39.7pc and 41.3pc; and three- and four-bed semis have dropped by 41.4pc and 44.8pc.
The price drops in the rest of the country are also substantial. Three-bed semi-detached homes are down 37.4pc, 31.6pc and 32.8pc from peak prices in Leinster (excluding Dublin), Munster and Connacht respectively.
The IAVI figures, which are based on sale prices achieved, are a more accurate indicator of the market than other surveys, such as the recently released DAFT report which relies on advertised asking prices. The DAFT report put house prices nationally at 30pc lower than peak, pointing to a gap between asking prices and sale prices.
The IAVI survey also reports few sales in 2009 -- a year that was described as "perhaps one of the bleakest years the market has ever experienced in this country".
However, there are signs of recovery with agents reporting an increase in viewings towards the end of last year. Auctioneers in the Dublin area reported enquiries and viewings increased by a quarter and the number of sales closed was up 9pc.
IAVI president Aine Myler called on the Government to fast-track the planned national register of property prices to provide for transparency in the market and to restore consumer confidence, citing a possible bottoming out of the market.
"These annual results are in line with our expectations for 2009 and consistent with our belief that the average residential property values would decline 40pc to 50pc from peak to trough," she said.
"The survey results indicate that the market floor is close, if we have not reached it already."
If any Bulls can post a link to their prediction of money priniting pre 2008 I take my hat off to you, if you cant then your an idiot that got very, very, lucky.
Look like Brit was right
:cool:
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Comments
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brit said 50 down he was right some peole got veryyyyyyyyyy lucky:cool:
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LARGE detached family homes in the capital have halved in value in the downturn.
No they haven't. Their value has stayed exactly the same. It's the price which has halved.
I think it runs to the heart of the ongoing economic crisis that those who should know better have mistaken price for value and continually discount cost externalities.0 -
Just shows how ridiculous prices have got here. If this was to happen in the UK, banks would go down right left and centre and with no more money left to bail them out, the UK would be bankrupt, ironically that is all the housing stock is worth (50% off peak), however the government have robbed the prudent with there various schemes and scams to keep the status quo. You can only compress yourself into a corner for so long though, as the UK is doing.
I believe in karma, what goes around always comes around........all you need is patience.0 -
This is happening in Ireland because the government there are facing up to the reality of their economic mess.
Not like in the UK where Brown and co are doing their upmost to throw money about which they haven't got in the hope it gets them re-elected in a few months time. It will be interesting to see what the situation is like when the huge cuts come.0 -
HammerSmashedFace wrote: »Just shows how ridiculous prices have got here. If this was to happen in the UK, banks would go down right left and centre and with no more money left to bail them out, the UK would be bankrupt, ironically that is all the housing stock is worth (50% off peak), however the government have robbed the prudent with there various schemes and scams to keep the status quo. You can only compress yourself into a corner for so long though, as the UK is doing.
I believe in karma, what goes around always comes around........all you need is patience.
Same here. I'm still waiting for little Tommy Trinder to get his payback. He tripped me up in the playground in class one and I've been waiting for karma to get him back for me. I know for sure that he's gonna die one day, that'll teach him. Payback is a b*tch, Tommy! :mad:"I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.0 -
brit said 50 down he was right some peole got veryyyyyyyyyy lucky
Pull the other one. When he said 50% down he meant overall everywhere. A total apocolyptic crash of the housing market. Has that happened?
If I said property will crash 70% and just one house in some remote part of the uk that no one cares about happens to go from 100k to 30k has my prophecy been proved right?
I've always been certain at least some property will be half what it was originally purchased for, but that is more to do with the idiot that bought it in the first place than whats happened to the market.0 -
My mistake I thought brit ment UK house prices.
Chucky you got any links to show how you predicted QE?:cool:
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