Posted by sean on October 09, 2008 at 11:40:29:
In Reply to: re: re: re: re: house sales posted by Daz on October 09, 2008 at 11:00:21:
Prices of property in castlebar, will drop by about 50& in real terms from their peak in 2006. This is happening all over the country.
Assuming that a three bed semi was 230k in 2006, factoring inflation in at about 4/5%, then such a house will be about 120 / 130k next year. That's all.
Any auctioneer who tells you otherwise is tellign porkies. Vendors will eventually realise that the 230k semi game is over, and those who have to sell (the 5% in default, the divorced, the seperated, and the dead) will off-load their properties at the above price. This will scrupper the market for everyone else trying to sell.
On the demand side, people will find it difficult to get mortgages. For example, banks and building societies have blacklisted bank officals and people involved in the construction industry for mortgages.
Coupled with that, Irish banks will have to change their funding model and rely more on deposits to fund their mortgage advances. All of this will reduce the availabilty of mortages and make them more expensive. Thus putting further downward pressure on houseprices in Castlebar and elsewhere.
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