Is the Bottom in Sight?

Is the Bottom in Sight?

Is the bottom in sight?The MyHome.ie Property Barometer results for the first quarter of the year revealed an easing in the rate of decline in asking prices for the second consecutive quarter. In addition, statistics from MyHome.ie show that during the same period both market activity and the volume of properties going “Sale Agreed” increased significantly compared to a year ago.

As Aesop said, “one swallow does not make a summer”, but given the supporting evidence and the fact that the rate of decrease in asking prices continues to ease, is there a trend now shifting towards a period of price stabilisation in the market sometime later in 2010? Or is it too early to be definitive? When will the market bottom?…

Have your say:

  • Could price stabilisation in the market occur sometime in 2010?
  • Or is it too early to be definitive?
There are 8 comments for this article
  1. Aisling at 8:09 am

    I’m beginning to think that Ken works for the property sector! I have been looking to buy for the last 5 months and property is definitely not in the freefall state it was in last year, saying that I think Dublin’s situation is very different to the rest of the country and is bouncing back more quickly. Houses are more popular with first time buyers than apartments. I am not selling my current property so i’m under no pressure to buy, but I think by next year property in Dublin will have stablised so I probably buy this year.

  2. John Ryan at 11:09 am

    Prices are still dropping and will continue to do so.

    Fact , one house in Booterstown ,27 Bellvue Park , Co Dublin has dropped its asking price from 1.5 million to 995 k today . And some say we have stabilised…no way . Still another 40 % to go .

  3. Stephen at 4:27 pm

    A bottom to the market some time soon? Are you serious?

    1. The banks are in a huge hole. They have to increase their capital reserves massively before the end of the year. They are all signaling tighter lending conditions & increased interest rates. In other words, getting money to buy property in Ireland will continue to get harder for the foreseeable future.
    2. The ECB base rate is at an historical low. This will not last. With signs of the major economies in Europe emerging from recession, and a weakening of the euro against the other currencies, it is only a matter of time before the ECB starts an upward trend in rates.
    3. The overhang in the Irish property market is still massive.
    4. The net migration trend in Ireland is still outward, with every likelihood of it continuing that way.
    5. Unemployment is still trending up.
    6. Wage increases are still not on the cards in the public or private sector for the foreseeable future.

    Anyone who thinks we’re near the bottom of the market is an idiot!!!

  4. Brian at 4:04 pm

    I have to agree with Frank. The future is bleak. Interest rates will continue to rise, further reducing the purchasing power of people and with the banks being very cautious, getting a mortgage is proving to be very difficult, if not impossible.

    With the revelations of the past week it seems like we are diving into a pit that is very deep and will take many years of hardship to climb out of.

    Rents will continue to fall. People do not have or are willing to spend the high rents requested in many areas.

  5. The Namanator at 2:04 pm

    I would expect that with interest rate increases and tax increases over the next couple of years, that banks will be forced to offer lower mortgages (based on benchmark of monthly mortgage repayments not being greater than 35% of net monthly income) and so that buyers will have less money available to bid for properties – leading to lower prices.

  6. Ken at 1:09 pm

    Is there a trend now shifting towards a period of price stabilisation in the market sometime later in 2010? Yes, stabilisation is occurring, prices will level off and inevitibly rise again slowly, it’s time now to take the leap, NAMA is here, banks have to loan to business next 2 years, more money, more investment, time to buy is now.

    Is it too early to be definitive? not all all, it’s a trend/pattern you can’t fake a slowdown in the reduction of asking price

    When will the market bottom?… April 2010, flat for summer months and then start rise Aug/Sep 2010…time to buy is now or in the next 3 months.

  7. Sean at 1:04 pm

    I’m a first time buyer and I going to buy as soon as possible before rates begin to rise

  8. Frank at 11:10 am

    Is there a trend now shifting towards a period of price stabilisation in the market sometime later in 2010? No, lending down and interests rates rising, consumer confidence at an all time low = Further trouble for the market.

    Is it too early to be definitive? Clearly Yes

    When will the market bottom?… Rural areas in about 12 months, Major Urban areas end of 2011, after a further 20-30% fall.

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