Wednesday, 16 January 2008
Ireland Land of Myths & Legends...The Irish Property Story...
Ireland Property - Daft Property!
"There are two tellings to every story"...
Story 1 is the average punters view:
House prices in Ireland are dropping dramatically..."For Sale" signs are springing up everywhere like some prolific new species (albeit genetically modified.) The buy property and become rich fantasy is fading fast into the mists, like so many other myths and legends. For some negative equity is now a reality. The building industry is crumbling. Unemployment rising. Repossessions increasing...
Story 2 is the vested interests view:
The Irish property market is only adjusting slightly...There's no need for panic...The prices drops are good for homeowners as they will produce a more balanced and stable market. There's now good value for buyers etc.
"A little of anything isn't worth a pin; but a wee bit of sense is worth a lot"...
The Irish property market has enjoyed unprecedented growth every year since 1993. To start with it was a simple case of supply and demand. A strong economy (the Legendary Celtic Tiger) fuelled the demand for property. Since 2000, approximately 75,000 housing units have been built every year but now a significant proportion of these new homes are unoccupied.
Building has stalled and unemployment is now rising (especially in the construction industry.)
Ireland is one of the most expensive places to buy property in Europe. However with the market oversupplied, since 2007, property prices have been dropping fast. Fact.
These price drops have had little effect on the affordability for many buyers though, as lower prices have been offset by higher mortgage rates.
Myths & Legends?
Ireland has lost it's Celtic Tiger or was it a Celtic Werewolf?...
"Time is the great story teller"so ultimately only time will tell!