Friday, 21 December 2007

Irish property market in freefall

The Irish housing bubble is crashing faster than anyone could have imagined.

Recent data show that prices have tanked 6 percent during the first 11 months of this year. Moreover, the crash is accelerating. During October and November, prices fell by 1.1 pecent and 1.3 percent respectively.

The average price of an Irish house in November was €292,124, compared with €310,409 a year earlier. This adds up to an average of €1,500 price decline each month throughout the past year.

It is only a matter of time before this story crosses the Irish Sea to the UK.

8 comments:

Anonymous said...

The Irish bubble has been outa control for years. This crash has been a long time a comin.....

speedtheplow said...

It'll never happen here until interest rates go up drastically.

Budvar said...

Speedy lad, I don't know who you've been talking to, but interest rates are coming down all around the world, that isn't stopping house prices tanking in all these places.

USA, Spain, Greece, Bulgaria (crying out loud, I can a fixer up there with 1/2 acre of land for less than I can buy a garden shed from B&Q!!)

I wont even go into Japan, as although their interest rates were less than zero, their property prices have fallen over 60% from the top, and their country has 100% employment and they're a nation of savers!!

What chance do we have when our entire industrial base is selling each other insurance, double glazing and cutting each others hair?

Anonymous said...

Speedy, you have a "pwoperty pwortfolio" dont you? :D

speedtheplow said...

Nope. I'm just a guy who came back to the UK last year and found that the flat I sold in W2 in the early 90s for £75g was being resold for £375g. I want a crash so bad it makes my gums ache. But I've discovered in life that the more I want something, the less it is likely to happen. And yet I cannot see a crash because of a) tight supply, b) descending interest rates, c) the UK property obsession, which may take years and years to repeal. I'll be an old geezer before I can buy another home, looks to me.

Anonymous said...

£75K to £375K? Bet you were miffed!
But with the current worsening credit crunch and with sentiment draining fast (UK property obsession?)house prices are going to fall big time.
Rightmove has 1 million properties for sale.Tight supply you say?
Interest rates are going down, yes, but so are house prices, great news!

Anonymous said...

We are with you Mr. Speed. We want that crash really badly too.

Anonymous said...

know how you feel 75- 375, cant blame you for wanting a crash too. i made a baddd mistake back in '01, sold a(damp)tiny house in dublin for 140k£ (180KE) after making a great profit due to the market - id bought it for 40k in '95. couldnt bring myself to buy 'anything' down the country after the experience of doing up and living in a damp house, and got bad advice at the time and no back up..wasnt autoomus as i would of like at the time and yup wish i could put back the clock and brought that one house i saw out of many back then over looking a lake for 80£k.. so its been years of renting, traveling the world on and off, stuff stored in boxes..been through all the emotional consequences and this is where im at, renting in a house instead of owning me own homestead and having my life as i wish. just had to share. hoping for better days ahead. j