20k is nothing, especially because houses are being sold 50k+ above the asking price.
Rising rates would do a lot more reduction than that. The default rate would skyrocket
20k off the house price won’t do much good if the banks decide you won’t be able to afford the mortgage repayments at a higher interest rate. The repayments on a 320k house at todays interest rates would be significantly lower than the repayments on a 300k house at todays interest rates plus 2%.
Assume even if the price drops with the higher interest rates people could end up having higher monthly repayments?
Fair enough, house prices could fall by 20K, but how much will people’s monthly mortgage repayments increase by? It’s robbing Peter to pay Paul!
Admittedly I am not overly familiar with the Irish mortgage market. But conventional thinking would suggest that for people who were wise enough to fix their mortgage rates years ago, will benefit immensely from some inflation.
It sucks to be someone who is a new buyer though.
Imagine what a labour slump would knock off the prices
So? Your only going to get 20k less on a mortage because of higher rates. So this helps people how?
Martin Lewis suggested the idea that a UK government might create a mortgage help scheme to stop people losing their homes. It would have been unthinkable a few years ago but with the furloug/pup schemes and the energy price caps it’s not unthinkable. It would prop up property prices so I could see governments buying into it. Especially in Ireland.
You know what make house prices fall?
If there were more houses for sale so people didn’t just buy whatever was for sale out of desperation
The housing market will crash within the next six months.
It’s another scam to force the price of labour down.
10 comments
20k is nothing, especially because houses are being sold 50k+ above the asking price.
Rising rates would do a lot more reduction than that. The default rate would skyrocket
20k off the house price won’t do much good if the banks decide you won’t be able to afford the mortgage repayments at a higher interest rate. The repayments on a 320k house at todays interest rates would be significantly lower than the repayments on a 300k house at todays interest rates plus 2%.
Assume even if the price drops with the higher interest rates people could end up having higher monthly repayments?
Fair enough, house prices could fall by 20K, but how much will people’s monthly mortgage repayments increase by? It’s robbing Peter to pay Paul!
Admittedly I am not overly familiar with the Irish mortgage market. But conventional thinking would suggest that for people who were wise enough to fix their mortgage rates years ago, will benefit immensely from some inflation.
It sucks to be someone who is a new buyer though.
Imagine what a labour slump would knock off the prices
So? Your only going to get 20k less on a mortage because of higher rates. So this helps people how?
Martin Lewis suggested the idea that a UK government might create a mortgage help scheme to stop people losing their homes. It would have been unthinkable a few years ago but with the furloug/pup schemes and the energy price caps it’s not unthinkable. It would prop up property prices so I could see governments buying into it. Especially in Ireland.
You know what make house prices fall?
If there were more houses for sale so people didn’t just buy whatever was for sale out of desperation
The housing market will crash within the next six months.
It’s another scam to force the price of labour down.