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Realistbear

Warnings Begin For Ireland's Hpi

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http://www.breakingnews.ie/2006/01/27/story241879.html

Despite the overall favourable assessment of the economy, a number of risks are highlighted. Externally, these include Ireland's vulnerability to any wide exchange rate movements, particularly when taken in the context of Ireland's relatively high level of external trade with non-euro area markets.
Domestically, concerns focus on house price developments, rapid credit growth and a construction sector that is "unsustainably large in the medium term", according to the outlook.
Annual increases in house prices moderated in the early part of 2005, but more recently have begun to pick up to an annual rate of more than 8%.
"This is worrying against a background of what were already very high price levels and fairly subdued construction costs...The reversal of the downward trend in house price inflation in recent months has
increased the risk of a sharp correction
in prices in due course.

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Another year, another warning from the Central Bank. This will be seen as crying wolf (again) by the media and will be ignored by the masses.

So many now are in way over their heads, it is time for the Central Bank to stop talking and start acting. Force the banks to lodge deposits with them in order to restrict lending. It won't stop the crash, but it might just save the country from total catastrophe in future. :(

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.... maybe I'll hold off getting a 95% mortgage for that €780,000 2-bed apartment, with one designated parking space (thanks!) in the docklands :D

the 'correction' here will be gruesome, one more spike then the music stops early 2007?

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A central bank without control over interest rates is like a man without a pen@s.

People in ireland have heard about this wolf coming for years, huffing and puffing and blowing their house down. Many bulls have shielded their houses in paper equity over the years, thinking that the wolf will not be able to blow it down. They don't know that this wolf doesnt heed smoking bans and will fight their paper with fire.

The social pressure to buy when you can is so high that these warnings are not taken seriously by the offspring of the paper houses.

The wolf will blow down the new apartments without losing breath and burn down the paper equity houses.

Fianna Fail havent invited the wolf to come until late 2007 after the general election although Trichet may send him over on a cheap ryanair flight before then.

http://www.breakingnews.ie/2006/01/27/story241879.html

Despite the overall favourable assessment of the economy, a number of risks are highlighted. Externally, these include Ireland's vulnerability to any wide exchange rate movements, particularly when taken in the context of Ireland's relatively high level of external trade with non-euro area markets.
Domestically, concerns focus on house price developments, rapid credit growth and a construction sector that is "unsustainably large in the medium term", according to the outlook.
Annual increases in house prices moderated in the early part of 2005, but more recently have begun to pick up to an annual rate of more than 8%.
"This is worrying against a background of what were already very high price levels and fairly subdued construction costs...The reversal of the downward trend in house price inflation in recent months has
increased the risk of a sharp correction
in prices in due course.
Edited by undersupply

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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