Friday, May 4, 2007
Irish property market in serious trouble
“Property asking prices down 10%.”It’s a headline to strike fear into the heart of any overstretched homeowner. And it’s precisely the headline that readers of the Irish Times - Ireland’s biggest broadsheet - woke up to last Monday. Asking prices across Dublin have slumped in the past six months, particularly in the wealthier suburbs of the city, amid a glut of property coming onto the market.It’s certainly a shock for those who thought prices could only ever go up. But as economist Dermot O’Leary of Dublin’s Goodbody Stockbrokers said: “It had to happen at some stage.” Even the IMF and the OECD reckoned the Irish property market was overvalued by at least 25%.