. We can look at interest rates as the way we assess lending to the future. We lend from today’s certain world to tomorrow’s uncertain world and because tomorrow is always unknowable, lenders must be given some payment to lend to the future, otherwise they would hoard. This payment is the rate of interest. If the rates are too high, there are numerous obstacles put in the way of lending and good ideas won’t be financed.
Irish property and the commercial property market in particular is not immune to these obvious observations. All assets are interlinked in a process called the credit cycle. When the world is confident, everything rises, and the corollary is also the case. People panic on the way up, paying too much for assets, but they also panic on the way down, offloading too much.David McWilliams: The property market and its players have changed profoundly since 2008.
Estate agents are beginning to panic is an absurd conclusion to draw. Estate agents can only sell properties when property owners instruct them to sell.
Surely estate agents are pleased? They went sales volumes to go up. More sales is more commission. We may finally be heading towards a healthy market with some choice finally.
I don’t believe estate agents will panic sadly. As per article there were very few houses available in the market previously therefore their % sale of high priced house was limited in volume. The decline in revenue of lower price will be recovered by increase in volume
Hes right actually Bankruptcy&🏠-ing crash wil happen cause of recession we in that getting worse, recession worse cause energy costs high&soon b higher, energy cost ⬆️ cause economic💥🥷🏻 we in with Ruskys.. that no end soon.. so 🏠 prices go ⬇️ for long time
Good article. He’s wrong about bankruptcy though. You can stop paying your mortgage anytime and make no payments for 10 years and it seems that nobody can so SFA 👍
McWilliams hell bent on saying doomsday is coming next week for the last 3 years, some week he’ll be right and he’ll be shouting from the rooftops told ye so.
Most in this area seem to be getting sold fast, for those that can afford mortgages in a higher rate environment will still have a shortage of supply unless many sell low, what would be your views on that?