If we all agree Houses are currently overpriced, At what point or points in the past were Houses the price they SHOULD be?
If we all agree Houses are currently overpriced, At what point or points in the past were Houses the price they SHOULD be?
39 comments
The Euro devalues by about 2% each year on average. You can’t compare historical prices to current prices without adjusting for inflation.
Also the government now requires all new houses to achieve A rated BER which makes the house more costly to build nowadays.
Probably when they were at their cheapest relative to the average wage. In my opinion they SHOULD be that price all the time
Edit: to be clear I’m chatting about the 60s 70s 80s not 2011
Edit 2: here we go
>In 1987, a house cost an average of 3.1 times a young couple’s net income, or the amount left after taxes were paid. At the height of the boom, in 2007, it had increased to 6.3 times
https://m.independent.ie/business/personal-finance/property-mortgages/more-difficult-to-buy-a-home-now-than-in-the-1980s-36321280.html
I want the 1987 prices
This is going to be a hard one for people to accept but a house is only worth what someone is willing to pay for it. They’re not underpriced nor over priced if people are paying the asking price and more. They’re just expensive for what others are willing to pay.
I’ll take the very bottom of the scale, thanks a mill.
When one entry level civil service job could afford a mortgage. That was the norm once and I think it’s not a bad benchmark. We would need to build a shitload of houses for that to be the norm again tho.
Supply and demand. Think about what’s slowing supply and what’s creating demand.
I don’t think houses are overpriced (though they are not cheap), I think wages are not high enough, the increase in productivity is not passed on to employees.
Houses need to be homes and not investments. That should be the goal but not sure if that will ever be possible.
If houses were overpriced, they wouldn’t sell… that’s how it works. They cost exactly what they’re worth when they sell at all times. If you don’t agree that a house is or isn’t priced correctly is kind of irrelevant. The purchaser largely dictates the price, not an observer
Me and 2 if my friends used to rent a standard 3 bedroom house for 600 euro. That seems fair to me
Can’t wait for it crash again
Stop selling to ppl who are not living in here permanently
Stop mortgages for landlords
Price cap rents
Shouldn’t have to pay more than 1/3 of your income. In an ideal world there would be an oversupply of publicly owned apartments in towns and cities. Meaning if you want your garden and driveway, that’s grand, pay a bit more and the apartments also keep the prices controlled. If you’re happy to live nearer the jobs and pay less for a smaller but rent controlled property, you can do that too. As a dub obviously I want them to build way higher in the city than is currently permitted, but it might be good for the country overall if this scheme was done in previously neglected settlements like Sligo, Caherciveen, multiple Donegal towns etc.
Dont worry though, Sinn Fein will fix it because they say so and providing methods for solving problems is for chumps
Bigger pain point is rental prices and access to mortgages is much reduced compared to pre 2007 era stuff, so more people are in the rental space.
Now you’re thinking like an economist!
2012. Buying at an auction because someone had financial failure, then slapping on a coat of paint and ignoring everything else that needs to be fixed- then selling for double the price you paid a month later is not right. It should be more in line with your own investment. But as long as hedge funds and the like are allowed to use real estate like a commodity and no preference for local buyers; it will blow up and then blow out and bankrupt small local businesses and communities
Picking the peak of an excessive-private-debt driven property bubble as the starting-point (fine if it is the percentage baseline, but the starting point should go back further e.g. 20 years), immediately makes this graphic suspect from the point of view of political messaging (e.g. implying that the peak was the ‘normal’ that we are ‘returning’ to).
Govt seems to think 2007. You think any of them m8ght secretly be landlords.
They arent overpriced though
The average wage should be able to afford a 3 bed semi detached.
Things are only worth what people are willing to pay for them.
Houses are unaffordable.
House prices are exactly what you’d expect given the limited supply in the market. They are not overpriced.
What a ridiculous question. In the 1970s.
2015/2016
I’m American, but hear me out, please. We have similar housing issues in America. I feel a two bedroom home should cost no more than $500 to rent or own, three bedroom no more than $750. Now, obviously there are more factors involved for size, land, and more bedrooms, etc. But at minimum these places should be widely available. The prices today and ownership of rentals is just beyond ridiculous. (I understand the euro and American dollar are about equal right now.)
There’s obviously a lot of work that goes into building houses but just compare the cost price to the selling price and see how much they differ?
I’m sorry if I’m coming across as dismissive but you really have to consider that we’ve a lot of high salaries workers in Dublin and very limited supply.
I’ve two kids, I want them to be able to settle somewhere in Greater Dublin but I just can’t see how the price of your average 3-bed in a middle class area will fall anytime soon.
I can’t comment on duplex units in rural locations but they’re completely different markets anyway.
Where is the issue, i would say be able to commute to a city via public transport within an hour.
I worked with a lad who was once a postman, he has now retired, but he bought a 4 bed detached in Dublin (was on the outskirts at the time) and he could afford that with his wife at home, he said it wasn’t easy but they could scrape by. On a postman salary he could afford a 4 bed detached within an hour of the city on a bus.
If the average salary cannot afford an average house something is wrong.
Probably around the 70s and 80s when a young couple could buy a three-bed semi before they got married.
However, there were much fewer jobs back then, and loads of people were emigrating for a better life. We had very little immigration, because there was nothing to come here for.
So it’s all relative really. Would you prefer cheap houses and a crap job, or expensive houses and good options for work?
Must be around the end of the last recession just before they started rising again
Wait until we have 110% mortgages (you do want that EV don’t you, think of the savings) then the fun begins.
My folks bought a house in 84 on one low salary and one part time wage while they were in their early twenties, that same house would.currently sell for about 25x what they paid for it and the kip is almost forty years older.
I think a local median income should be able to afford the local median house price of a standard 3-bed.
Housing crisis exists in every popular country
Irish People: Were special and the only one who has this problem
2012 was a good time.
There was an article in our local paper this morning about a new subdivision that was going to have only “smaller” homes. 3-4 bedrooms. When did 4 bedrooms become “small”? They called them starter homes – expected price was mid 3s to low 4s. Midwest, low- medium COL. Jesus. I feel bad for anyone needing a house right now.
Overpriced!? My house, for sale now, check daft 😉 is a 2 bed former council house, only 2 murders over the years. Situated in a picturesque jungle of concrete, with lots of equine fun for the kids. Occasionally there may be shootouts with local drug gangs…who needs Netflix eh?
€420,000
Dumb graph.
You need the prices relative to incomes. Absolute prices and price changes doesn’t tell the whole story.