A useful list of sellers reducing asking prices

Irishpropertywatch has just published the latest price drop update from myhome.ie. 723 price drops in the past two weeks. Are there any bargains here, or is it best to wait until they drop further?

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Moderators' Note
Although our Posting Guidelines do not allow discussion of house prices, we are making an exception for this thread as it contains hard information which may well be useful to home buyers.

Off topic posts will be removed from the thread

Re: Any Bargains Here?

It looks as if this list is being used as a marketing ploy. Some new homes are on it. A better guide would be the cost of the property last year less a % discount.

Re: Any Bargains Here?

No, this is not a marketing ploy. These are real decreases in asking prices that are compiled by a program that trawls through the myhome site every week and pick up decreases in asking prices (and a few increases too).The new homes on it are where developers have had to drop their asking prices.

If you really want to see more stats on this the link below will even give you details of how many times each property has has its asking price reduced:

http://dreadedestate.5gbfree.com/IPW_ALL_PROPERTIES_18_AUG.xls


The home page for the website is:


http://www.irishpropertywatch.com/

You can look at all the individual reports from the home page.

This must be essential information for anyone who is thinking about investing in property.

Re: Any Bargains Here?

But this is just people who were asking more than a property was worth being forced to come down to the real value.
I think that we will not be able to say that prices have dropped until either a developer sells a property for less than he got for a similar one, or somebody sells a property for less than they paid for it.
Has anybody witnessed either of these.

Re: Any Bargains Here?

woods said:

I think that we will not be able to say that prices have dropped until either a developer sells a property for less than he got for a similar one, or somebody sells a property for less than they paid for it.

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This sounds like a very restrictive definition of what constitutes a price drop. You're completely ignoring neighbours that have to sell for less than what neighbours with similar houses were getting last year... I've heard of moving the goalposts, but this takes the biscuit to be honest!

woods said:

Has anybody witnessed either of these.

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Even under your restrictive definition, this thread describes a case where the developer lowered the price for an individual case. The bank was no longer willing to give the OP a 100% mortgage for the overinflated price that they originally signed the contract on.
http://www.askaboutmoney.com/showthread.php?t=60966

Re: Any bargains here?

My point is that if people are asking a price that does not reflect the value of the property then reducing the asking price does not mean that the value of the property has dropped. It just means that people were being greedy and chancing their arm and did not get away with it.

Re: Any bargains here?

woods said:

My point is that if people are asking a price that does not reflect the value of the property then reducing the asking price does not mean that the value of the property has dropped. It just means that people were being greedy and chancing their arm and did not get away with it.

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The value of the property is what someone is willing to pay, not what someone asking. If a house is selling for less money that a similar house the year (or months) before that consititues a price drop in the same way that the opposite is true.

To use your logic, over the last few years sucessive stages of launches for a development have raised prices, does "then reducing/raising the asking price does not mean that the value of the property has dropped/rissen"?

Re: Any bargains here?

comanche said:

The value of the property is what someone is willing to pay, not what someone asking. If a house is selling for less money that a similar house the year (or months) before that consititues a price drop in the same way that the opposite is true.

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I agree but this is not what I have seen.
I have seen the extra price increase that they were expecting to get being dropped.
What I have been asking (and not very well obviously) is does anyone know of someone selling a property for less than they paid for it or even for less than their neighbours paid.

Re: Any bargains here?

Originally Posted by woods http://www.askaboutmoney.com/showthread.php?p=479710#post479710
I agree but this is not what I have seen.
I have seen the extra price increase that they were expecting to get being dropped.
What I have been asking (and not very well obviously) is does anyone know of someone selling a property for less than they paid for it or even for less than their neighbours paid.


Do you consider a developer selling a property at the same price as a previous phase with free fit out, creche paid for, car, or any of the other sweeteners as a price drop?

Re: Any bargains here?

They have updated the numbers again.
[broken link removed]

So glad I didn' buy a couple of months ago

Moderators' Note
Although our Posting Guidelines do not allow discussion of house prices, we are making an exception for this thread as it contains hard information which may well be useful to home buyers.

Off topic posts will be removed from the thread

Hi,

People are dropping prices because they want to offload. There are some fab houses on there but some people are also increasing the price of their property which is hard to believe. There is a backlog of houses to be sold and this will take time at the moment on [broken link removed] there are some 52,000 throughout ireland for sale and this is just on daft. It is a worrying situation for anyone trying to sell!

"sellers" should only be worried about selling if they are in financial problems and need to get rid of their house. I mean they still have a roof over their heads, what is there to be worried about. Its this stupidity of dropping prices that is actually causing worry in the market. If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

Sal92 said:

"sellers" should only be worried about selling if they are in financial problems and need to get rid of their house. I mean they still have a roof over their heads, what is there to be worried about.

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They might be worried about being stuck with a property that no longer serves their needs going forward. Maybe their employment prospects are in jeopardy? It's hard to know how many people were encountering financial difficulties these last few years as often they would just withdraw equity (i.e. make a mortgage top up) to solve it. The lack of this safety net may be a big problem in future.

Sal92 said:

Its this stupidity of dropping prices that is actually causing worry in the market. If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

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Good luck trying to sell your apartment with that attitude!

The problem is that affordability has been squeezed by the ECB raising interest rates over the last 2 years and now it is likely to be squeezed further by the need for stricter lending practises to remove uncertainty from the bank's shareholders. Put simply, people can't and won't be able to afford to pay the prices that they were paying last year.

Sal92 said:

Its this stupidity of dropping prices that is actually causing worry in the market. If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

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Welcome to the free market.

Sal92 said:

"sellers" should only be worried about selling if they are in financial problems and need to get rid of their house. I mean they still have a roof over their heads, what is there to be worried about. Its this stupidity of dropping prices that is actually causing worry in the market. If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

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There will always be some people who have to sell. And with the huge overhang of unsold houses the only way to stand out from the crowd is to reduce the asking price. The properties that reduce the asking price, sell the properties that don't won't sell.

The same anology could be used in the stock market. If no one was prepared to sell for less then the current price then prices would never drop but it just isn't practical or in line with reality.

Re: Any Bargains Here?

woods said:

...I think that we will not be able to say that prices have dropped until either a developer sells a property for less than he got for a similar one, or somebody sells a property for less than they paid for it.
Has anybody witnessed either of these.

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The Evening Herald had a story a few days ago about a developer reducing the price for Phase 2 of a development in Delgany. As far as I remember, the first phase had been sold at €700,000 and this phase was on sale at €595,000.

Re: Any Bargains Here?

Sherpa said:

The Evening Herald had a story a few days ago about a developer reducing the price for Phase 2 of a development in Delgany. As far as I remember, the first phase had been sold at €700,000 and this phase was on sale at €595,000.

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Saw this on the news today. I got the impression that the developer put the prices of the first phase up over night when he found that people were lining up for the launch. It is obvious that the first phase were greatly overpriced and that the current one is more realistic.
I posted here before about people who were saying that they were putting offers on four houses at the same time and that this was pushing up prices at the time.
I am not saying that the buyers are totally to blame for the unrealistic prices that were achieved last year but they were a major contribution to it, as were the media.

Sal92 said:

If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

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By that logic I could just as easily claim:
"If Buyers stuck to their guns there would be no more price increases - and sellers would eventually see that the market is not rising."

This is not the way the free market works in reality.

On the question of reliable market data, is there any such thing ?
Even the ESRI / PTSB index is based on valuations for mortgages, not "hard" sales figures.

reg

Sal92 said:

"sellers" should only be worried about selling if they are in financial problems and need to get rid of their house. I mean they still have a roof over their heads, what is there to be worried about. Its this stupidity of dropping prices that is actually causing worry in the market. If people stuck to their guns then there would be no price drops - and buyers would eventually see that the market is not dropping. Then the buying would start again.

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Dont forget that rising intrest rates have reduced the amount people can borrow so that effects house prices downwards.
Freely availible credit drove prices up, restricted credit will drive prices down (as well as other factors)