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

Celtic Tiger Is Sick - Some Areas Now Down 10%

Recommended Posts

http://www.economist.com/displaystory.cfm?story_id=9968857

Ailing Celtic tiger?

Oct 12th 2007
From the Economist Intelligence Unit
Ireland's economy may suffer from a property slump
Ireland's property market is already showing signs of a correction.
Estate agents report prices down in some areas by around 10% this year,
and shares in companies with property market exposure have also experienced falls. But is a contraction a welcome correction in a bloated market? Or could the property market spiral downwards, harming the broader economy via a weakened construction sector, lower household spending and rising unemployment? These are serious risks, though the data so far points to a soft landing..../
With a cooling of the market already underway, Ireland
may be about to experience a period of sharply falling property prices.
With the cost of mortgage servicing rising, many borrowers are beginning to be squeezed. The many investors who have bought to let are particularly vulnerable. Those who have borrowed to finance property purchases are experiencing a widening in the gap between rents and mortgage repayments. For many investors, the logic of holding property is now based entirely on the assumption of future capital gain. If this assumption changes, there is likely to be a
rush to offload
properties. This is the most likely trigger for a correction in the Irish property market and an
almost certain
, sharper than forecast slowdown in the wider economy.

"Soft landing" another good Irish joke?

Share this post


Link to post
Share on other sites
Its going to need a right battering to get anywhere historicla norms. Didn't some areas see over 50% up in one year. :blink:

without splitting hairs the 50% would be NI i.e. UK Economy not Celtic Tiger

However, not that it matters because NI is already showing neg hpi http://www.belfasttelegraph.co.uk/homefind...icle3053216.ece (thanks Vespasian - NI Thread) and will be hit harder than England, Wales or Scotland IMHO

Share this post


Link to post
Share on other sites

No-one wants to be the one who says panic.

Which is why by the time we are told to panic... it will almost certainly be to late.

Already moving my pension and ISA cash out of property exposed funds....

Not all, just reducing my exposure.

Share this post


Link to post
Share on other sites

The end of the report was funny :lol: , they are already predicting an upturn next year and even 2009.

That's it Mr. & Mrs. Houseseller, hold out for the right price, recovery is just around the corner, and the gullible and greedy chase the market down.

http://dynamic.rte.ie/av/230-2298375-320-180.smil [realplayer required]

"Economist's are predicting some recovery in the market next year and say the property slowdown is almost at an end" Niamh Nolan, RTE News, Dublin.

Share this post


Link to post
Share on other sites
The end of the report was funny :lol: , they are already predicting an upturn next year and even 2009.

That's it Mr. & Mrs. Houseseller, hold out for the right price, recovery is just around the corner, and the gullible and greedy chase the market down.

"House Prices To Recover Next Year" - The Times, 1991 ;)

Share this post


Link to post
Share on other sites
"Economist's are predicting some recovery in the market next year and say the property slowdown is almost at an end" Niamh Nolan, RTE News, Dublin.

That's a classic quote, they were saying the same thing in the States about a year ago.

What a mess.

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.

  • 354 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.