First-time buyer seminar

We had a great first-time buyer seminar last night in the Clonmel Park Hotel. Hosted with Frances O’Hanlon mortgage brokers, the event featured speakers on topics such as mortgages, life cover, contracts, wills and of course property (which was done by me).

About 50 potential purchasers attended and a lively Q & A took place afterwards.

It was good to see that many people are starting out on the home purchase trail again.

At current interest rates, based on purchasing or renting an average 3-bed home, you can save €250-300 per month and own your own home by buying.

On a 92% mortgage, you will need savings of €12-14,000.

This will enable you to purchase one of a vast choice of homes in the Clonmel area.

At the end of January 2009, we had only 11 homes for sale at under €200k.

At the end of January 2010, we had 67 homes for sale under €200k.

Of these, 39 are under offer.

Prices are at a much lower level than one year ago and as a consequence, the level of interest in purchasing has increased greatly.

We are scheduling many more viewings this month than in any month last year.

So if you are interested in buying, now seems to be a good time, based on what potential purchasers think.

It is possible to lock into historically low interest rates at the moment.

Anyone with a view on this?

Posted via email from quirkeproperty's posterous

June Viewing and offer figures – Half year wrap-up

Are things looking up for beleaguered estate agents in Ireland?

While there is still a lot of bad news regarding the economy, jobs etc, there has been a big increase in activity over last month.
Viewings and offers have increased, month on month.
For the first time this year, offers have exceeded the same month in 2008!

The lack of finance seems to be abating, with trader-uppers now getting finance as well as first-timers, albeit with some difficulty.
We have noticed a marked increase in sales of home with a value around €300k, whereas up until now, €200k was a cut-off point!

Enough of my analysis, here are the figures:

June 2008: Viewings 89 Offers 39

June 2009: Viewings 77 Offers 41

Amazing to see that offers come in more than 50% of viewings. Viewers are very focused, have done their homework, know the houses they want to see and the price they are willing to pay.
While viewings are down by 12 on May, offers are up by 2, giving an exceptional strike-rate.

Home-sellers who are getting viewings have addressed pricing (in some cases down 25% from 2008!) and more deals are going through.

The six-month figures are:

Jan-June 2008: Viewings 695 Offers 236

Jan-June 2009: Viewings 409 Offers 192

So there you have it. Six-month on six-month, viewings down by 41%, offers down by 19%.

After the dreadful first 3 months of the year, there has been a substantial lift in activity, albeit at a lower value range.
However, it is not as bad as the bleak, doom-laden picture being painted by the national media.

Houses are selling...if priced for the current market.

www.pfq.ie

April viewing and offer figures

When posting the March figures earlier this month, I said “Viewing levels for the month of April to date are up. It will be interesting to see if this is maintained for the whole month.”
Well, the bad news is, it hasn’t been maintained.

Here they are:
April 2008: Viewings 179 Offers 48
April 2009: Viewings 52 Offers 48

Viewings are down.
The good news is that offers are up.
This is partly explained by the sale of 2 small farms, the first for the year, which generated huge interest. There were many offers for both of them in various formats, prior to their sale.

On the housing front, viewings are down this month, compounding the feeling of gloom in the marketplace following the Budget and the general air of uncertainty concerning jobs and the economy.
Locally, Clonmel is doing relatively well. Our employers in healthcare are robust, their industries seeming less affected than others.

Other industries though are feeling the pressure and this is feeding a reluctance to spend or make any big decisions, such as buying a house.

Retailers in most market segments are under pressure.
Those offering exceptional value for money seem to be surviving well and making sales.

It is the same with housing, pricing is all-important.

www.pfq.ie

Light at the end of the tunnel?

Over the last 2-3 weeks, we have noticed a marked upswing in home viewings. This has resulted in an increase in the number of pending offers received at our Clonmel office. The web stats are up and the phone is ringing more. We are all a little busier.

First-time buyers are coming back into the market. I see a lot of people that have been sitting on the sidelines, watching the market fall over the last year, now move to get mortgage approval, view houses and make offers. House prices are at about 2003/2004 levels, while interest rates are on the way down.

Money is still difficult to get, the banks are very selective about who they will (or can!) lend money to. It seems that job security is once again a prime focus for the banks. A lot of the newly approved potential home-buyers are in Government jobs, or very secure businesses.
The maximum loan-to-value ratio seems to be 92%. The people who are now bidding for homes have been saving for the last year or two and are in a position to come up with the 8% balance and solicitor fees of approx. 0.7-1%.

I speak to potential buyers numerous times a day. When we meet at a property, the state of the market is always a topic for discussion. A number of common themes are emerging. The general consensus is as follows:
1. House prices have fallen...a lot. First-time-buyer houses, which typically cost €230-250,000 in early-mid 2007, are now priced around €200-215,000.
2. Interest rates have fallen, and it seems are due to continue falling, improving affordability.
3. As stated, these potential home-buyers have spent the last year or two doing what their parents urged them to...saving.
4. Vendors are more acclimatised to the drop in prices and will listen to reasonable offers. They will include more in the house sale and are now bending over backwards to entice buyers.
5. First-time buyers are the only group that banks are targeting at present, so they know that they are the only buyers in the market. This gives them more confidence.
6. That same knowledge is also a big driver to them. Their friends are starting to put in offers on houses and they see more and more houses being marked as Sold on http://www.pfq.ie/ and in our office. They do not want to be left behind!

In other words, they feel that the market may have bottomed out, or be close to doing so. They realise that if the Government inject money into the system, resulting in more liquidity, then prices will stabilise, if not harden slightly. With lowering interest rates and lower house prices, it really is now much more affordable to buy than to rent. Of course, the money paid on a mortgage is actually for their own benefit, unlike rent, viewed as “dead money.”

Is this the start of an improved outlook for the housing market? Time will tell. All I know is that people that only a year ago thought they would never afford a home are now completing purchases and will be in for Christmas.