The budget is announced and house prices rise?

[handude]

Hi,

We had expressed interest in some houses and EA's were still going to come back to us about an offer we made. About half an hour ago we got 2 phonecalls from two different EA's and they mentioned that the asking price of the house had increased.... As both properties are not directly within the FTB band I was wondering if anyone else has experienced sudden price increases since the budget is known. To me it looks like the EA's are pretty thick thinking they can ask more now. I would have expected an increase in house prices under the 317K mark, but certainly not one on the higher priced houses.

Any thoughts or experiences are welcome

 

[Satanta]

To me it looks like the EA's are pretty thick thinking they can ask more now. I would have expected an increase in house prices under the 317K mark, but certainly not one on the higher priced houses.

There is the potential for buyers who were waiting to see what the budget had in store to have suddenly come back onto the market. A flood of bids may have been recieved by the EAs.....
Just as likely that the EAs are chancing that people will take that view and spark some bidding wars. Guess only the EAs know for sure.

 

[handude]

There is the potential for buyers who were waiting to see what the budget had in store to have suddenly come back onto the market. A flood of bids may have been recieved by the EAs.....

That could certainly be a reason in general. However we were the only ones who put a bid in... The only thing we could do was have a good laugh and walk away. We will see if they still ask the same medio January ....

 

[Satanta]

That could certainly be a reason in general. However we were the only ones who put a bid in... The only thing we could do was have a good laugh and walk away. We will see if they still ask the same medio January ....

Looks like it was the latter of the two scenarios then. People often panic when something changes, the EA was obviously hoping you did in this situation.

 

[Ravima]

some were holding off lest there be stamp duty changes, there wasn't so they move.

 

[plaudit]

some were holding off lest there be stamp duty changes, there wasn't so they move.

but surely people wouldn't hold off as such, they'd just structure the purchase so that any positive effects in the budget could be taken advantage of?

 

[efm]

but surely people wouldn't hold off as such, they'd just structure the purchase so that any positive effects in the budget could be taken advantage of?

People were indeed holding off - you would be surprised at the number of people that wouldn't think as clearly as you plaudit

 

[room305]

People were indeed holding off - you would be surprised at the number of people that wouldn't think as clearly as you plaudit

That's true - there was a woman interviewed on the news prior to the budget. She was a FTB and had a budget of €300k. She told the interviewer she was holding off on making a purchase to see if there were any favourable changes to Stamp Duty in the budget.

I have yet to figure out why she was holding off but hopefully her mind is at ease now.

 

[Rhino 1]

I think that ye are all looking at the buyers point of view - the seller now sees that as no change in stamp duty this then gets rid of the McDowell effect (causing slow down by opening large gob).

Personal opinion that houses will rise at least 5% in the next few months.

 

[whathome]

Personal opinion that houses will rise at least 5% in the next few months.

The market weakness has nothing to do with stamp duty but rising interest rates. The ECB are going to raise rates again today and probably again in the Spring, this means that you should expect prices to fall by at least 5% in the next few months.

 

[Rhino 1]

Interest rates had risen by .75% or was it 1 before any slow down came and it happened to coincide with McDowell stamp duty comments - as i said personal opinion but i think i will be proved right as 1/4 of a rise is €1,250 a year (€104) a month on a mortgage of €500,000.
I also feel a lot of purchasers were sitting on fence waiting for budget -changes in stamp duty which did not materialise.

 

[whathome]

Interest rates had risen by .75% or was it 1 before any slow down came and it happened to coincide with McDowell stamp duty comments

Incorrect, the slowdown started well before McDowell's comments.

I think i will be proved right as 1/4 of a rise is €1,250 a year (€104) a month on a mortgage of €500,000.

I think you will be proved wrong as increasing interest rates limit the total amount buyers can borrow.

I also feel a lot of purchasers were sitting on fence waiting for budget -changes in stamp duty which did not materialise

Vendors may also have been sitting on the fence waiting for the budget, now ready to put their property on the market in January.

 

[Rhino 1]

Vendors may also have been sitting on the fence waiting for the budget, now ready to put their property on the market in January.[/quote]


Dont want to start a you said/ i said scenario but if buyers are coming to market in January (they will presumably have loan approval) then this will inevitably affect the house prices in a positive manner.

 

[whathome]

if buyers are coming to market in January (they will presumably have loan approval) then this will inevitably affect the house prices in a positive manner.

If more property is coming to the market in January then this will inevitably affect house prices in a negative manner.

 

[moneygrower]

some of us don't think a price drop is negative! (even a home owner)

 

[gurramok]

Dont want to start a you said/ i said scenario but if buyers are coming to market in January (they will presumably have loan approval) then this will inevitably affect the house prices in a positive manner.

Mortgage approval normally lasts for 6 months hence increases would take about 6 months to have an effect on market hence lowering affordability by the rising rates
Obviously newbies taking out loans now would have rates at ecb 3.5%+retail!