Will House Prices Crash?

Grimlock

Will house prices crash?
I'm just out of college and while I'm a bit away from purchasing a place of my own for the first time, I'm praying for a crash!

I'm just wondering if one is possible (everything is possible)
A friend claims that with our membership of the EU and the Euro, it'll be very unlikely that we will see the bust a nd boom that hit Britain during the 80's and early nineties.

Also with SSIA's maturing next year there seems to be a good chance that house prices will rise further then. Being in college I never had the cash to open one of these accounts, nor the foresight for that matter.
Still kicking myself on that one!

Anyone got any opinions?

lomb

interest rates will be low until 2008 according to many in the know. the main reason is reunification of west and east germany has sunk their economy and france well thats france loads of red tape so no chance of any growth there. that leaves small economies like ireland and spain overheating rapidly with no cold water in sight.

i personally doubt there will be a crash, 80000 a year are coming here from the new eastern block countries.

my advice is to buy a house and buy now. if its dublin u are after clonsilla still isnt too bad and will mature nicely in a few years.

magpie

I concur with Lomb

MorningStar

It does look like a house price crash is unlikely. There are still tons of people out there who want to buy property but can't afford to. THese people are actually keeping the price stable at the lower end of the market. That combined with epoints already made
For a price crash to happen something pretty terrible will have to happen. Somthing where many people end up unemployed if it happens the chances are you won't be able to afford a house then either. You will either be unemployed yourself and/or peolple will not be able sell their properties as they can't afford to upgrade or in negative equity.
The only people who benifit from price crashes are people with cash that buy property after the crash and it goes up. THe chances are you won't be somebody with cash. Price crashes are bad for most people I wouldn't wish it.
Look up reports about the crash in the UK during the 80s, I saw somebody on TV a few years ago (3?) and he was still in negative equity from the 80's. The properties were over valued. I don't know if that is true in Ireland now I think if you compare construction cost with prices while largish the cost of the land brought into the calculation it's no that big.
In say that there is a thread here saying Irish property is 20% over valued according to some important group.

meditraitor

Next tuesday , all house prices will crash,, wait and see