REA Property Auction: Has the market finally bottomed out?

REA Property Auction: Has the market finally bottomed out?

REA Property AuctionAll eyes will be focused this morning on the Real Estate Alliance auction where 59 properties are going under the hammer today for up to 60% less than their original asking price.

The auction, which kicked off at 11am in Dublin’s Shelbourne Hotel includes houses, apartments, commercial properties and development sites ranging in price from €60,000 to €1.5m. Most of what’s on offer today are located in the provinces where the market has taken a heavier hit than in the main cities and towns.

Some believe the auction will help provide the Government with a true valuation of properties across the country and will also reveal the answer to the million dollar question i.e. has the property market finally bottomed out? The auction has also been described as a desperate attempt to kickstart the property market and Eimer O’Keeffe of REA says members are convinced that today’s auction will act as a “catalyst to stimulate the market nationwide”.

Have your say?

  • Will this auction stimulate the Irish property market on an upward trend?
  • Will it reveal if the market has finally bottomed out and provide a true valuation of properties in Ireland?
There are 13 comments for this article
  1. Investments Portfolios at 3:39 pm

    I recently tweeted and stumbled upon your post. Really your post is very informative and I enjoyed your opinions. Do you use twitter or stumbleupon? So I can follow you there. I am hoping you post again soon.

  2. Martin at 9:17 pm

    No, if you research and study recessions of yester year it takes between 5 to 7 years to bottom out from the start of falling prices. Prices began to dip from April 2007 so therefore the market will bottom out between 2012 to 2014. We’ve a long way to go through the storm yet.

  3. mimi at 11:40 pm

    During the boom all in sundry were “realestate investors” and property experts now they have been replaced with all in sundry being ‘economists” please people get on with ur lives u r not economists or shall I say not capable of predicting the way things will go as we all know the governments move in mysterious ways and will try to manipulate the property business eventually to their advantage it will be in their vested interests…

  4. Oliver at 9:29 am

    I think this is a positive step and let’s hope we see more auctions which will help to make prices more transparent

  5. Jennifer Richardson at 9:28 am

    Looking for a modest vernacular house, c19 early c20.(built before any energy efficient construction methods).
    Should the asking price for these also fall in relation to the falling values of housing estate new builds? If the land value comes into play how does this relate to falling property prices?

  6. Helena at 7:40 pm

    I am a first time buyer and have been watching the market closely since my approval last February (2009).
    I am so glad I held out and did not go ahead with a purchase then. Actually what held me back was when I heard an interview on RTE radio and the head of some auctioneering organisation sounded way too optimistic in a false and kind of “cute hoor”ish way. I decided then that I would follow my gut feeling instead of any so called “professional” advice.

    I rented a 4-bed house all on my own and it has cost me EUR7,200 for the year up to March (last month). In February I negotiated a lower rent with the owner for a second year and am now paying only 500 a month, EUR6,000 for this current year until next March. Today I am delighted to read that I have saved on average 10% (EUR20,000) on the price of my future house by deciding not to go ahead with my planned purchase last year. My budget is EUR200,000. And the house I am renting is much nicer than the one I would be buying. I will also have about 12,000 extra towards a deposit by next March.

    Moral of the story for me? I would advise all my peers to do as I did. What’s that? Well just imagine if I had never heard that interview with the Auctioneering expert. Listen to the property experts…. and then do the opposite !!!!!!!

    And I think today’s auction was a PR disaster and only brought home to me and others waiting in the wings that we are dealing with a bunch of unprofessional gombeens in the property field who think we are all gullible idiots. I mean how can an auction which offers an average of 2 (yes, TWO!!!) properties from each county possibly aim to represent the state of a national market in a positive way?

    Thank you, Irish property “experts” for showing us today that you haven’t got a clue, must not be relied upon for any guidance, and are stuck in a profession which is well and truly in the toilet.

    Yippeeee for RTE radio interviews !!!!

  7. George at 2:27 pm

    What was the point in putting such reserves on the properties? Were they serious about selling or not? Without a doubt that has got to be the most beautiful own goal I have ever seen. Whatever residue of the boom has been truly wiped clean. How could these estate agents have gotten it so wrong? If they did their job properly and set realistic reserves most of these properties would have sold and we would have seen true market value. The only way to fix this is to have a rematch with no reserve. Then we will then see the true bottom of the market and get on with our lives.

  8. pat at 1:36 pm

    No I don’t believe it has bottomed out, the country is in still in a very weak state, job losses still hapening, there is still a huge dole queue, you can’t get a bank loan easily and some people are still hanging on to their high notions of what they think their poperty is worth.

    When a bunch of estate agents put on an auction of properties, saying prices slashed (with an AMV in place??) and hearld a new low price in the hope of triggering a rush to market, it doesn’t signal a bottom, it signals real desperation.

  9. Sickofit at 1:04 pm

    What a joke of a auction when you still had reserve prices. How was this going to provide the Government with a true valuation of properties across the country????

    With next to nothing selling today, I think the message is loud & clear now! Stop the current cheerleading for the VI’s & lot the market open freely. it is only then that we’ll find the bottom.

    Remember consumers drive pricing & not sellers. Time EA switched side if they want their businesses to survive.

  10. Frank at 12:36 pm

    I think that is a resounding NO. This is a sign that the market has much further to fall. Many of the lots were withdrawn because they could not get the “advised minimum value”. If I were selling I think I would be asking myself who is doing the advising and fire them………

    The best quote on this disastrous event comes from what appears to be the only honest person in the industry, Karl Deeter, on Irish Mortgage brokers site

    “Sadly, many sellers are still living in cloud-cuckoo-land, I believe they will get their AMV bids eventually, but they might have to hang around for a decade to do so……….”

  11. MARY at 12:34 pm

    I dont understand how one auction to dispose of properties nobody wants can kickstart a property market based on developers greed and completely reinvigorate an ailing economy.

  12. Jimmy at 12:19 pm

    The bottom of the market has not been reached. This will only happen when houses are sold with no reserve which is not the case at today’s auction. During the good times the market drove the prices up and there were no complaints from the industry, just cheers for each new record price achieved. Lets have the same policy now and allow the market to find its level without cute “industry specialists” trying to con the customer into paying more than a property is worth.

    If you want to buy, don’t. Sit tight and wait for the even bigger falls that will come when the repossessions and NAMA sales start.

  13. Ja at 12:17 pm

    As long as many European countries are mired in debt, as long as we are borrowing money to service our debt, and as long as people are still joining the dole queues in large numbers (e.g. Quinn today), then there cannot be a recovery, or a “bottoming out”.
    Someday, houses will be available that, say a couple in the public service, e.g. a guard and nurse, will be able to see the asking price is 3 to 3 1/2 times their wages and it will be considered affordable. Then we will have “bottomed out” and then we will have the real value of houses, not these “pie in the sky” unrealsitic figures that estate agents are now trying to peddle as “value”. Just because something hugely over-priced is marked down, does not make it good value.

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