Jump to content
House Price Crash Forum
Sign in to follow this  

Meanwhile In La La Land (ireland)

Recommended Posts

A gem from todays Irish Times.


Borrowers feel pinch from higher rates - study

By Cathal Hanley Last updated: 26-06-06, 13:10

As many as 80,000 borrowers will have to tighten their belts if interest rates rise even modestly further, according to a joint study by IIB Bank and the ESRI.

Roughly 40 per cent of borrowers surveyed reckon their financial position would deteriorate substantially if interest rates rose by 1 per cent, the study found. As many as 80,000 borrowers would be hit by another half per cent rise in interest rates.

The study estimates that some 50,000 of these are already feeling the pinch from recent rate rises and will suffer further as the ECB increases interest rates in response to growing inflationary pressures.

The spectre of higher interest rates is already having a dampening effect on consumer borrowing, according to David Duffy, an economist with the ESRI.

Mr Duffy noted that less than one in five consumers indicated that the higher value of their property has encouraged them to increase their borrowing. "In fact, over the next two years the aim for nearly one in five consumers is to reduce the size of their mortgage debt,' said Mr. Duffy.

Austin Hughes, chief economist at IIB Bank, noted that "in broad terms, the financial position of Irish households remains very strong. Their bank deposits and the value of their houses are about 4½ times larger than their borrowings".

However, Mr Hughes did note that these aggregate figures conceal substantial differences in personal circumstances.

"There has been a clear deterioration in the situation of low income borrowers as interest rates began to increase. In addition, many of those in their 40s also face difficulties because while they are asset rich, many are also cash poor at present," he said


and this one


Housing market may have peaked - report

By Cathal Hanley Last updated: 26-06-06, 12:25

A drop in the number of housing starts may indicate that the housing market has peaked, a leading construction firm said today.

Davis Langdon PKS (DLPKS), one of Ireland's leading construction cost management firms, has reported a slowdown in house building commencements over the last quarter of 2005 and the first quarter of 2006.

In the company's Summer 2006 Review of the Construction Industry, Norman Craig, managing director of DLPKS, warned: "Housing starts recorded in the last three months of 2005 and the first quarter of 2006 show significant reductions.

"Whether this represents a trend or an aberration remains to be seen. However, it must be pointed out that six months of sizeable reduction commencements cannot be ignored and may be seen by some as heralding the peak of the housing market."

Nonetheless, Mr Craig said the "building bonanza" is continuing at pace, with building activity on course to grow by 1 per cent this year.

"Once again, housing led the way as the amazing growth of the Irish construction industry continued in the first three months of 2006. In terms of housing, there was a 25 per cent growth in completion of new homes in January, February and March. Compared to the same period of 2005, a total of 22,000 new homes were completed as against 17,500."

DLPKS is confident that 80,000 housing completions will be achieved this year, however, and that construction will continue to grow.


Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 308 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.