Jump to content
House Price Crash Forum
Sign in to follow this  
Smell the Fear

House Prices Not High Says Irish Times

Recommended Posts

Found an article on the Irish Times website, claiming that house prices are not actually that high when you take inflation into account.

Irish Times

Inflation is also a benchmark against which to judge house prices. Money is only as good as the goods and services it can buy. Certainly, house prices in Ireland are higher in real terms than in most other EU countries. In nominal (actual price) terms, however, much of our 'higher' house prices reflect the fact that prices generally are higher.

A real house price index - one that adjusted house price growth rates down by the rate of inflation - would show that, in the terms that really matter, house prices haven't grown by as much as we think. That phenomenon has a further blessing: for aspirant younger buyers whose wage rises are linked to inflation, it gives them more of a chance to buy the properties they want.

So in the interests of balance I thought I would check out the reality:

since 1996, inflation has amounted to 45% (compounding annual rates)

Since 1996, HPI has amounted to 260%

As you can see, the writer makes a very valid point. :lol:

Unsurprisingly, he didn't mention any actual numbers in his article (He is "head of propaganda research" at a large EA). <_<

Edited by Smell the Fear

Share this post


Link to post
Share on other sites
Found an article on the Irish Times website, claiming that house prices are not actually that high when you take inflation into account.

Irish Times

So in the interests of balance I thought I would check out the reality:

since 1996, inflation has amounted to 45% (compounding annual rates)

Since 1996, HPI has amounted to 260%

As you can see, the writer makes a very valid point. :lol:

Unsurprisingly, he didn't mention any actual numbers in his article (He is "head of propaganda research" at a large EA). <_<

That article is a disgrace, The Irish Times ought to be ashamed of themselves and Marc Coleman ought to be fired. As you point out the figures do not support the argument but even if they did the argument itself is unsound as he implies that wage inflation is matching CPI which it is not, also that is is desierable which it is not and finally that this is somehow sistainable which it is not.

Share this post


Link to post
Share on other sites

The Irish public have swallowed it hook, line and sinker but no more!

Marc Coleman will be lined up in front of the firing squad when the crash gets worse, along with Austin Hughes, Jim Power, Ken McDonald (Irish property rampers extraordinaires)... have I missed anyone???

David McWilliams will be standing with a megaphone in Phoenix Park shouting I TOLD YOU SO!!!!!!!

Share this post


Link to post
Share on other sites

He makes a valid point - that Ireland has negative real interest rates i.e. inflation at 5% is higher than interest rates at 3.75%. If your pay is going to keep pace with inflation, inflation is paying part of your mortgage.

This is hardly news though and negative real interest rates are something that you have in times of recession or when the economy needs major stimulation. Ireland doesn't and low interest rates are partly what have got it into this mess in the first place.

Edit: Just whated to quote this absolutely superb bit of nonsense from the article:

Certainly, house prices in Ireland are higher in real terms than in most other EU countries. In nominal (actual price) terms, however, much of our 'higher' house prices reflect the fact that prices generally are higher.

Classic. He should get a job with New Labour.

Edited by Ah-so

Share this post


Link to post
Share on other sites

http://www.siliconrepublic.com/news/news.n...ryid=single8385

8.7pc of US firms consider pulling out of Ireland

22.05.2007 - While a vast majority of US-headquartered manufacturing firms in Ireland are considering ongoing investment in their Irish plants, a worrying 8.7pc are now considering relocating all of their Irish operations overseas.

According to a survey of 41 US companies in Ireland conducted by Indecon and presented last week before the American Chamber of Commerce of Ireland, rising energy and unit labour costs are perceived as major weaknesses to the Irish economy in the eyes of the management of US multinationals in Ireland

Edited by OnlyMe

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.

Guest
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.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.