The long awaited slowdown in the new homes market has finally arrived with most agents finding the going tough particularly for the more expensive houses and out-of-town apartments.
New developments which normally sold out in about cancelled as first buyers find it difficult to raise the finance and couples trading up run into problems with shifting their older houses.
The slowdown is being accentuated by the reluctance of banks to make bridging finance available unless would-be borrowers have a legal contract in place for the sale of their first house. Could it be that the dreaded word "chain" is again entering the property market? People can only buy once they have sold. If this trend takes a firm hold then we are surely moving into a more difficult market.
One sure thing is that the continuous spiral in new house prices over the past few years is finally over. It's now all about value for money. With a whole range of new developments in the pipeline for the Dublin suburbs over the coming weeks, developers will be pitching prices on the low side to grab sales before the summer break. Watch out for some extremely keen prices for two-bedroom apartments and townhouses - the new style standard home for first time buyers now that three-bed semis have virtually disappeared from the landscape.
Not only are the queues gone but buyers with mortgage approval in their back pockets will invariably get first choice.
