"So the Daft survey simply shows that now vendors are not as daft as they were last year." Donal Buckley, Irish Independent journalist.
"The Taoiseach is providing a shelter for people who are buying. This pertains to the major developers and big high-rolling development land purchases are what is being protected. To tell members (of the Dail) this practice has been around for some time makes it worse. This is a gift to people who are making big money on the exchange of development land and who have made massive profits on it." Eamon Gilmore, TD, Leader of the Labour Party.
"You can't be worrying about construction employment on Tuesday and then on Wednesday try to trigger something that will affect the construction industry." Taoiseach Bertie Aherne, TD, President of Fianna Fail.
“Furthermore, at that point, the interest cycle had not yet peaked. It was widely tipped, expected and accepted that the ECB would yet again raise rates that September - and possibly again at Christmas. If this scenario had played out, we would now be dealing with interest rates of 4.5 per cent. This would have severely impacted any recovery or resilience in the different residential market segments. We would have potentially seen increased rates of foreclosures, something that is plaguing the US residential markets, as well as the major banks - which are having to write-off billions of dollars.” Mary-Kate McGarry, economist with Savills Hamilton Osborne King in Dublin
"While supply continues to retrench, there are signs that housing demand might finally be stabilising. House prices are bottoming out some 15 per cent off their peak 2006 levels and a more normal level of activity will return to the market in the second half of the year." Dr Ronnie O’Toole, chief economist with National Irish Bank
“According to the Daft.ie data, the stock of homes for sale on the website has begun to stabilise over the past few months. However, closer analysis reveals that stock levels in Q1 were still 51% ahead of last year’s levels. The stabilisation has been mainly due to the fact that the number of homes being put on the market has fallen quite significantly, by 48% year-on-year in Q1 in fact. This may be due to a number of reasons, including a realisation by the sellers that the market has reached a saturation point or that sellers are unlikely to achieve their desired selling price in the current market. To clear this stock, asking prices may have to be adjusted further downwards, and vendors should not let their emotions get in the way, as recent evidence suggests buyers are willing to move at the right price.” Dermot O'Leary, Chief Economist, Goodbody Stockbrokers
“The first signs things were going wrong appeared earlier this year when property funds, which had been the main final buyer in the market, were forced to freeze withdrawals. With the potential of large sales by property funds, rising vacancy rates, a large supply of new properties, and the difficulties of some large lenders in the market in raising funds; there is a real prospect of sharp falls in commercial property prices.” Morgan Kelly is professor of economics at University College Dublin.
‘‘All banks are more cautious about development finance following the sub-prime crisis; the extent of this shift and the way in which it is reflected in lending terms varies widely across markets… One possible consequence of a reduction in the supply of development finance, and therefore new buildings, is that any softening in tenant demand is partially offset by lower supply growth, thereby limiting any rental downside.” CBRE report on a survey of lenders in 19 European countries.
No comments:
Post a Comment