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House prices to fall 15% this year

Posted Sunday, September 5, 2010

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Falling Prices

House prices are falling at a faster rate than predicted.

They were predicted to fall by 10% this year but they have already fallen by 7.7% in the first half of the year and a fall of 15% is looking more likely.

That means that Irish house prices will have fallen by more than 40% since their peak by the end of the year.

No Floor on Houses

Brian Lenihan had been saying that Nama had put a floor on property prices and that this would encourage people to buy.

It looks as if he was being over optimistic.

Indeed well known economic pundit Dadid McWilliams has said that they have further to go.

Falling Further

For many years there will be an overhang of Nama property waiting to come on the market and depressing prices.

Indeed David McWilliams predicted over a year and a half ago that Irish house prices would fall by 80% from their peak.

He had previoulsy predicted, while it was riding high, that the Irish Stock Market would fall by 80%.

It, in fact, fell by 78%.

Similar Fall

He said that there would be a similar fall in Irish house prices.

It looks as if we are many, many years away from another property boom.

Moville didn't get the Celtic Tiger up here but it got the construction boom that went along with it.

Now that's gone too.