September Viewing and Offer figures

Without wishing to sound negative... (note to self, be positive), September continued the downward slide for all in the Estate Agency business, when the figures are analysed.

House prices continue to fall. This has brought about a large number of enquiries from prospective purchasers, but they are slow to follow up on the enquiry with a viewing and consequently, an offer.

There are two reasons for this as I see it.

A lack of confidence is one.

A lack of available finance is the other.

As the banks wait, in zombie-mode, for the NAMA proposals to get past the Green party, no finance is being made available for house purchase.

Or any other purchase for that matter.

Why Lenihan and Cowen think that giving tax-payers money to the bozos that run the banks is beyond me.

Why they think that over-paying the banks for these toxic liabilities is a good idea is truly beyond belief.

Yet it seems that the fate of almost €60billion of our money hangs on a decision of a movement that does not really have a coherent policy on anything.

That said, if the Greens bring down this Government, I will give them my vote next time out...I may even consider joining the party if they can dethrone Cowen, Lenihan and Coughlan.

Protestations from the Govt. that “The pace of decline is slowing” (i.e. things are getting worse more slowly, but still getting worse) are meant to be good news!

Figures speak the truth and for our part, the figures this month show the continuing decline in activity in the market.

September 2008 Viewings 119 Offers 43

September 2009 Viewings 71 Offers 14

Remember September last year was a poor month anyway, as the economy had started to go into free-fall.

Even still viewings are down 40%.

Offers are down 68%.

Economists predict that levels of negative equity and inability to repay mortgages will increase over the near future, thus driving down the price of property further.

We need a new approach to our country’s regeneration. The current lot have shown no initiative or leadership.

In an effort to sound off on a positive note, they need to go...now!

Anything else will be better.

www.pfq.ie

Action and reaction – Property values and bank shares

One of the immutable laws of the Universe is that “For every action, there is a reaction.”
Today, if further proof were needed, we witness again the folly of the Governments plan to saddle the tax-payer with the toxic liabilities of the banks and developers through the NAMA vehicle.
Bank shares have been rising steadily over the last few weeks and jumped by up to 10% today.
This article shows that post-NAMA, others value our banks as being cheap.
However, this is predicated on NAMA taking the toxic liabilities off the bank balance sheets at more than value...and dumping them on us!

When will this lot wake up?
Cowen is asleep and unable or unwilling to deal with the crisis in the country’s finances.
He seems to be in thrall to the Union lobby.
Lenihan is a barrister, yet is planning to construct the largest property investment company in the world...leveraging the entire country against the debt!
Coughlan...well the less said the better.
Unfortunately, the alternatives are asleep as well.
Instead of forsaking their 2 month holiday and asking for a recall of the Dail, Kenny and Gilmore prefer to “rest for the struggle ahead.”
Well here’s some news boys, the struggle has been going on for the rest of us since early 2008!

As a committed member of a democracy, I am concerned that the lack of leadership from anybody other than the bearded Union leaders will drive us towards social anarchy.
Perhaps we do need a benign dictator to get us through the next few years.
Without this, we may end up with a not-too benign version!

Irish bank guarantees and property prices.

We have watched this week as the Irish Government bail-out of the banks, through a Guarantee Scheme, led to a rebound in the Irish Stock Market.

We really don't know what is going to happen next. Will the government bail-out work in the longer term? What will happen if it does? What will happen if it doesn't? Will the tax-payer have to take a large hit? Will a bank fail? No one knows for sure what will happen.

People asked me all week how this will affect the local housing market. At this point I don't know. Anyone who says they do know is just guessing. I think that if the plan works and credit is freed up a bit, then more houses will sell. No-one expects house prices to rise on account of it though!