Thursday, April 23, 2009

Quotes of the Week

"I reject any suggestion that NAMA is a bailout for developers. The agency will acquire loans at an appropriate discount from the face value of the loans held on the banks' balance sheets. Developers whose loans are transferred to NAMA, however, will continue to be liable for the entire face value of their loan obligations. There will be no discount for developers. I suspect Mr McWilliams is living up to his reputation for swimming against the tide, rather than offering any serious analysis." (Minister for Finance, Brian Lenihan)

"Prospective buyers can plan ahead with greater certainty now that the mini-Budget is out of the way. There are more houses with multiple bids on them than before. We have 100 houses under offer at present.The banks are definitely open for business, although the journey from funding to closing is definitely more protracted. Everyone involved -- bankers, solicitors and buyers -- are being much more forensic." (Michael Grehan, Sherry FitzGerald, Irish Independent)

"There have been some sales, but the big problem is getting deals across the line. Plenty of prospective buyers have identified the property they want, driven a tough bargain and want to buy. But we are now finding customers who are distressed about how they are being treated by banks stretching out the loan process continually." (John O'Sullivan, Lisney, Irish Independent)

"There are certainly 'green shoots' showing at a number of housing developments. I'm no longer hearing unending dismal stories about phones not ringing and empty showhouses. Over the last six weeks or so things have improved greatly. It's nothing like it was in the 'good old days' of course, but sales have been steady. Mostly this is first time buyers who recognise that this is the time to buy, and it is unlikely that house prices will drop drastically from here on." (Valerie McGrath, Irish Independent, in an 'article' about Athlumney Wood development in Navan, where she is told "there have been 35 sales over the past few week".)

"The idea of buying a ’starter home’ just for the sake of it so you’d have the equity to move on in a few years is wrong, you should buy so that you can live and settle down in the place you actually want to live in. The sharp falls we are seeing now mean that many people will be able to do this in the future, unfortunately there is a lost generation who won’t." (Karl Deeter, Irish Mortgage Brokers)

"The banking climate for private investors could hardly be worse. For starters, lenders are looking for 20 per cent deposits and, even if they run with the investor, they are charging premiums of at least 1.25 to 1.75 per cent over the home loan rates. To add to the difficulties, many investors continue to be stung by a reluctance of some lenders to pass on the value of interest rate cuts on existing mortgages." (Jack Fagan, The Irish Times)

"Where was the Honest Joe auctioneer when the market began going south, and the loud noises in the business kept proclaiming it was still buoyant, dragging gullible first-time buyers into the web? Auctioneers didn't create the problem, but by God many of them fed off it like vultures, and if some were uncomfortable, they kept their own counsel. They can hardly now claim to be scapegoats. Sorry, Sarah, no concession to feminine fashion in the bunker. Get sized up for the unisex pair." (Michael Clifford in the Sunday Tribune)

No comments: