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Prices 'slashed on 90% of Northern Ireland homes'
Estate agents claim now is time to buy
Thursday, 7 August 2008
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Northern Ireland estate agents today claimed that prices have been slashed on up to 90% of their stock.
And the estate agents said the move is working, and bringing buyers back to the beleaguered local property market.
Financial institutions are now the main obstacle for first-time buyers, it was claimed.
And despite a tough year for the housing market, both BTWCairns and Templeton Robinson have had notable sales during July.
Simon Brien, director at BTWCairns, said: “We have had our best sales period in the last few weeks which is quite something over the 12th holiday and a difficult market. We are quite surprised to have so many sales.”
The estate agent sold two large properties recently for £2.4m each — one in Upper Malone and the other at Foxleigh Hall, Lisburn, both of which attracted several bidders.
Simon agrees lower prices are bringing buyers back: “We have definitely seen a lot more activity at the lower and middle end of the market. Developers have reduced their prices so much they are practically at cost — they can’t go much lower.”
And affordable prices have proved a winning strategy at BTWCairns Gardiner Square scheme on the Shankill Road/Peter’s Hill were 40 new homes were sold in five days. Prices here range from £90,000 for a one-bedroom apartment and £110,000 for a two-bedroom property.
Thaxton Village in Lisburn has also proven popular with up to five sales a week. The homes here are also keenly priced from £185,000, according to Simon.
“The summer has been the time people have stopped sitting on their hands waiting for prices to fall further,” said Simon. “They feel there is value in the market and now is the time to go forward and buy.”
He added: “It is more difficult now to get a mortgage now than six months ago, but banks are working on new products and there may be funding possibilities for Co-Ownership which will help first time buyers.”
Meanwhile, Michael Young, partner/director at Templeton Robinson said they had a good sales month, adding affordability was key to this success.
Michael pointed out prices have fallen with sales being agreed some £20,000-£30,000 beneath the asking price: “Vendors are prepared to take a lower offer as long as they can afford the next house they are buying.
“There are bargains to be had,” he says. “One seller has reduced the price of his King’s Road property from £600,000 to £450,000 — that has got to be a bargain.”
He said while raising the 20% deposit was difficult for first time buyers, provided they have this and a guarantor they should get a mortgage.
And Templeton Robinson has had a number of key sales in July, including a four-bedroom detached home in south Belfast sold for £850,000, while £950,000 was agreed for a family home in Bangor and a Stormont property in need of modernisation secured a bid of £500,000 after just one week on the market.
But Michael warns that the prices will not fall forever: “In six months time prices could come back and then sellers will want the market value.”
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Huge discounts on unsold dwellings in new developments are only a matter of months away - developers are coming under pressure from the banks - I'll predict another price drop of 20 - 30% before we see any real movement in the property market.
Posted by Martin | 21.08.08, 09:22 GMT
Gee, is it any wonder no-one like estate agents? And shame on the Belfast Telegraph, this is not proper journalism. You're supposed to report the facts, not just one-sided advertising.
Posted by Denis O'Sullivan | 16.08.08, 18:01 GMT
I, like the staff at Templeton Robinson am a realtor, for some 28 years might I add. I have never read as much clap trap in my life by people in the resale home profession. Unless employers are willing to give their employee's an average 50% or greater pay increase your market will continue to go down, would any N.I. realtor care to put their money where their mouth is and have a one thousand pound bet on the matter.
Re Michael's bargain at 450000.00 pounds, if it be such a bargain why does he not purchase the property (bound to make his fortune).
Parents etc do not be fools and guaratee your childrens mortgages, if they fail it will mentally and financially destroy you, not to mention your relationship. The mortgage companies would not be asking for this guarantee if they where of the opinion properties where going up in value.
This is the first time N.I. has seen such an acceleration in property prices, all I can say is "welcome to good old USA" and the greed factor. Brian Kelly
Posted by Brian Kelly | 07.08.08, 19:56 GMT
"....affordable prices have proved a winning strategy at BTWCairns Gardiner Square scheme..." etc ...
I agree with the other comments here. This isn't news. This is merely an ad/pr piece for the named estate agents. Poor.
Posted by Jenny P, Belfast | 07.08.08, 16:52 GMT
I do not understand why the press and media give estate agents the airtime and column inches for free advertisment. No other industry gets to make such sweeping forward looking statements without disclaimers, financials institutions must, US floated companies must etc etc Why don't the jounalists print the facts from these surverys and then ask the customers, the buyers for their opinions? The only silver lining for those of us who have bought in the last few years is that estate agents are clearly struggling. I'm in the market for a new car and I notice 911 & Boxster prices are plumeting, that's probably a better indication of the state of the housing market and estate agent confidence!
Posted by Andrew C, Portadown | 07.08.08, 16:20 GMT
"Estate agents claim now is time to buy" - They would, wouldn't they!
“In six months time prices could come back and then sellers will want the market value.” - Pigs might fly!
Any rational and widely reported (elsewhere) analysis of NI house prices indicate that they are grossly overvalued and will continue to fall for some considerable time. This is what you should be telling your readership. Perhaps it would be fairer if self-promoting estate agents were treated with less deference - your readers deserve more
Posted by AWM | 07.08.08, 15:21 GMT
A message for the estate agents of the world.
People aren't buying houses because THEY CAN'T AFFORD THEM!
Stop blaming everyone from banks to the media. Advise sellers to drop the prices of houses and we (the priced-out putative buyers) can come back into the market. It's in your interests. After all, if houses aren't selling you aren't getting paid.
Posted by Mrs C | 07.08.08, 14:51 GMT
Yet another trumpeting estate agent advertisement from the Belfast Telegraph. Funny your reporter tends to write about all these so called bargains yet fails to mention the falling prices across the country, the closing branches of estate agents, the pitiful efforts to say things are all right. Wake up and smell the coffee.
Posted by Paul McCaw | 07.08.08, 14:30 GMT
Estate agents are always going to try to stay positive to get confidence back in market. I just had my house valued and it was valued at £30,000 less than the price of 2 houses in same street who have already reduced their asking price significantly and they dont have some of the extra's mine has. So obviously estate agents are giving lower valuations in desperation of sales. Personally I think people who can hold off should hold off because prices are going to fall further - people who have to buy may be buying at the moment e.g. young couples who are getting married and perhaps held off until prices fell a little and as someone has already said developers those well off people who can afford to pay big money - there will always be a certain amount of people with plenty of cash as it is the way society is divided nowadays - those that have and those that struggle.
Posted by ian | 07.08.08, 13:52 GMT
Helen, if I took what you have previously reported into considersation when buying a property I would now be in serious negative equity with almost all of my savings lost in a house falling in value.
Fortunately, I sit here with my savings still in my hand awaiting prices to return to a level which is affordable before I make my move onto the property ladder.
Posted by David | 07.08.08, 13:51 GMT
Again Helen Carson paints a rosy picture of the housing market in Northern Ireland.
I think it's irresponsible that she has this platform - taking her advice (buy, buy, buy) - you would be in negative equity to the tune of tens of thousands of pounds.
A case in point is the final comment "In six months time prices could come back and then sellers will want the market value.”
What was she saying 6 months ago?
Posted by donall garvin | 07.08.08, 12:40 GMT
Why is he not mentioning sales at the lower, nay normal end of the market, the £100,000 - £200,000 range? Could it be because people who can afford £500,000 + houses tend to have a little more cash on tap than those scrapping together deposits at the bottom. This article is so full of inconsistencies I don't know where to begin.
As for builders selling at cost, they will simply have to start building smaller more affordable houses normal people can buy won't they!
To be honest I am annoyed that Brien has been given this forum. I mean come on Carson this is just lazy journalism!
Why don't you go out and talk to the builders themselves? or the average income household? that way reality might bite.
Posted by M Spence | 07.08.08, 12:26 GMT
“There are bargains to be had,” he says. “One seller has reduced the price of his King’s Road property from £600,000 to £450,000 — that has got to be a bargain.”
If a shop keeper was looking £6 for a Mars Bar then reduces it to £4.5 Its still not a Bargin!
LOL
Posted by LOL | 07.08.08, 12:16 GMT
“There are bargains to be had,” he says. “One seller has reduced the price of his King’s Road property from £600,000 to £450,000 — that has got to be a bargain.”
It's hardly a bargin when price @ £600,000 was grossly overinflated.
He is just trying to drum up business.
The only way house prices are going is down, which is good for everyone (except estate agents like this one)
Posted by mr lister | 07.08.08, 11:59 GMT