Ireland see biggest house price fall globally the previous 12 months

Bobeagleburger

Prices keep on tumbling....:D

Ireland had the worst average house price decline among all reporting countries in the Global Property Guide survey over the 12 months to Q2, 2011.

House prices were down by 14.84% year-on-year, an even worse decline than the 11.83% fall the previous year.

The only European countries which experienced weaker performances than the previous year include Netherlands (-4.07%), Slovak Republic (-6.49%), Croatia (-6.55%), Spain (-8.43%) and Athens, Greece (-9.88%) (all figures inflation-adjusted).

In the UK, average house prices were down by 5.33% year-on-year, after rising 6.04% the previous year.

The housing market began rebounding as early as Q4 2009, but started falling again in the last quarter of 2010.

Norway led the small group of European countries which experienced house price increases, up by 5.93% over the year to end Q2, 2011.

Norway’s housing market began to rebound in Q3 2009 and has not slowed, driven by low interest rates and strong economic growth (4.8% more than a year earlier).

Housing markets in Estonia (Tallinn), France and Iceland rose during the year to end Q2, 2011 after suffering house price falls in the previous year.

In Tallinn, house prices were up 4.94% year-on-year, after last year’s fall of 0.66%. In France (data is from FNAIM), prices of existing dwellings rose 4.65% year-on-year, after a fall of 1.71% the previous year.

In Iceland, house prices rose slightly by 0.60% year-on-year, after plunging by 9.04% during the previous year.

US house prices fell 9.05% after inflation (a 5.93% decline in nominal terms) in the second quarter from a year earlier, the largest decline since 2009, according to the Federal Finance Housing Agency (FHFA). During the quarter, house prices dropped 2.33% after inflation (a fall of 0.63% in nominal terms).

“House prices are still over-stretched in many countries, and developed world economies are still weak, so price-falls were to be expected,” said Matthew Montagu-Pollock, publisher of the Global Property Guide.

“Low interest rates will be positive for housing, but only if the underlying economies recover.

“And recovery will ultimately bring a sting in the tail, because higher inflation would eventually bring higher nominal interest rates, choking strong upward house price movements.”

Read more: http://www.breakingnews.ie/ireland/ireland-endures-worst-average-house-price-fall-in-global-survey-518011.html#ixzz1W89Nqicy

noxqs

Hardly surprising. The prices are still a fair few multiples above average industrial income from what they should be. So they'll keep dropping until they get back into line. Which from now is still around 50% from today.

"The market" is sometimes a bit crazy but there is no compelling evidence that Ireland is somehow special and deserves higher house prices based on income multiples than the rest of the industrialized world - on the contrary given the shoddy build quality in the last 15 years the house prices should probably be lower than the western European average.

Duckjob

I've been viewing a good few places with the missus over the last while.

I have to seriously bite my tongue when listening to slimy EA's gushing about how tidy, but very modest 3bed semis still asking €250-300k are "fantastic value" because they were €450k 3 yrs ago.

The_Conductor

Economists reckon that prices could fall to half their *current* levels before bottoming out (Morgan Kelly is championing this).

The government are removing at least another 4 billion from the economy in December's budget (which there are calls to bring forward to October) and calls have been made to all government departments for proposals on how to cut expenditure by a blanket 20% across the board...........

There is no upside to the Irish economy in the immediate future- and there is little/no availability of credit- so in my opinion- regardless of how large our price falls have been- they have a hell of a way to go..........

lomb

Duckjob wrote: »

I've been viewing a good few places with the missus over the last while.

I have to seriously bite my tongue when listening to slimy EA's gushing about how tidy, but very modest 3bed semis still asking €250-300k are "fantastic value" because they were €450k 3 yrs ago.

Offering 180k will hush them up. They arent worth any more all things considered so why would you offer them any more for them?

Bobeagleburger

smccarrick wrote: »

Economists reckon that prices could fall to half their *current* levels before bottoming out (Morgan Kelly is championing this).

Hopefully :cool: