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WE DON’T NEED a new report to tell us that house prices in Ireland are high – we’re living that reality. However the new Knight Frank Global House Price Index has found that prices in this country are rising faster than anywhere else in the world.
The index shows a 15% increase in prices in the year to September, noting that they still remain 39% below their pre-crisis peak in 2007.
We had the highest six month increase from the first to the third quarter of this year at 13.5%.
The UK’s market, which had a housing bubble similar to ours, also experienced a significant turnaround in the last twelve months, while countries like Dubai and Hong Kong have seen price growth slow.
The news comes as the Department of Finance this week asked the Central Bank to go easier on those looking to buy homes for the first time. The bank recently said it wants most first-time buyers to front 20% of the cost of the house as a deposit – something critics say could push people out of the market entirely.
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Misleading headline, “house prices in Ireland” should read “house prices in Dublin”.
It’s starting to affect all areas now and not just Dublin. I live in a small Kildare village 20 mins from Newlands Cross. House prices in this village have gone up nearly 20k on average in the last 4/5 months. However I agree Dublin is in a league of it’s own at the moment.
It is hard for first time buyers to get the 20% deposit together while paying rent. Houses in many rural areas are still falling as speculators are buying up blocks of apartments.
This is Ireland where things happen by themselves and people get huge salaries and pensions for staying out of the way and letting things happen by themselves.
Lol. Love it Gerry. So true.
Haaa very good – absolute banana republic. Place where hard working people paying taxes willing to have own place are in the far worse position than those on free housing list. Joke country but don’t get me started…
Unfortunately, I agree with you, watched tv last night going thru the roof , I felt very sorry for a lot of people looking for accom. Flicked to other channel and saw fat gipsy wedding with obscene everything unbelievable , everything financed by the poor taxpayer . Why aren’t there investigations into this whole business? Then news headlines Jackie Healy funeral led by a horse banana land
The interests of the landlord class take precedence over the common social good in Ireland. As long as housing is treated as a profit center for the rentier elite and assorted vested interests like the banks, we will suffer the consequences as a society as demonstrated in the property bubble, inevitable crash, this next bubble developing now and the current homelessness crisis.
It would be far better not to use the peak figures at 2007 as a guide. Do we really need to go back to that madness again ?
Because that is the plan Mark. Get prices back to peak of the bubble because then the banks look OK. Screw the taxpayer, the homeowner, the first time buyer. Tis all about the banks.
It would help anyone who bought in 2006/07 so I can get out of debt
How? Will you sell? Does it change your mortgage repayments? Were they lower for the last few year? Just curious?
Instead of listening to Hobbs & Co they should have listened to Shakespeare: ‘Hubble, bubble, toil and trouble’.
Good Idea Richard.
Weal start lobby our Yokel government and bankers to falsely over-inflate property prices immediately to get you your pickle.
Just let us know how much falsely conjured positively equity do you need buddy.
It’s not a bubble.
It’s not a bubble.
It’s not a bubble.
There’s no place like home, there’s no place like home, there’s no place like home…
Oops cant afford a home….
There’s no place like renting, there’s no place like renting, there’s no place like renting…
Oops cant afford a renting….
There’s no place… like… being homeless…? :-(
Remember soft landing, soft landing, soft landing
Here we go again
meh, the gov’s point of view is, let them emigrate if they don’t like it. We can always replace them with chumps we can ripoff in time via immigration….
Quick start buying property!! Great investment!
I’m not that glad I bought mine in 2006!
The fun will really start when the interest rates begin to rise!!
Indeed Trevor, and this is a ticking timebomb on those who bought in the last bubble, many are on trackers and only able to repay because rages fell. They took out mortgages when there was no USC. Buyers in te last few years *may* be able to cope with interest rate rises, but I am not too sure about others.
Watch out buyers,might not be worth it,in the long run
The property tax will be fun at the next evaluation!
Its a supply/demand bubble , has Nama released all the properties it has ?
A bubble is fuelled by demand, speculation and the belief that recent history, where we see price rises, is a solid indicator of future price rises.
This is a classic bubble.
John, that’s actually how bubbles are formed. They then need demand for the foreseeable future (tick), speculation (tick) and the belief that recent history is a sold indicator of future price rises.
I was looking to buy earlier this year. Estate agents are routinely upping the price of unsellable ‘ghost estate’ houses to artificially inflate the bottom of the market.
I also went to viewings where the estate agent claimed that numerous above asking price offers were already tabled. In most cases, those properties are still unsold.
Until we properly regulate estate agents, unsustainable rises in house prices are inevitable. I see no reason, for instance, why an estate agent should receive a higher commission for a higher price. Incentive to lie are hardwired into the system, and the consequences are too great to stand back and let it continue.
I’m glad I bought my house in 2010.
Twice zero is still zero !
Everybody calm down. Price rises do not mean a bubble. The price crash was an overreaction and under valued property was the result.
For it to be a bubble it has to go on for a lot longer. There is a shortage of property in Dublin so prices are based on that.
Jayo. There’s a shortage of property for sale because many sellers have rented their homes because they can’t clear the mortgage, they themselves are renting.
Spot on Jayo, those cheerleading rising prices don’t realise that this puts them at high risk of repossession. If the banks think they can get their money, they will do whatever it takes.
Jayo
I don’t doubt there are some people wanting to gamble like you suggest. The idea it is such a large portion that it has a large impact is very questionable.
As for banks repossessing because of better returns relies on people who haven’t been paying mortgages. Again is that really a high proportion?
All vaguely possible but not probable. It seems like massive conjecture.
Lol, so my claim that banks will move to repossess property, where mortgages can be cleared because of price rises, is dismissed by you as ‘massive conjecture’, because you don’t know the proportions? Funny guy.
No no Pat. Sure the banks haven’t repossessed because they are lovely lads altogether. That’s how banking works.
Of course it is, but it’s only of benefit to the banks if market conditions are right. They’re not going to swoop on lots of property overnight and at the one time. Slowly, slowly, catchy monkey. Drip, drip, drip.
Patlyndo
I didn’t say I didn’t know I asked is it really a high portion. It isn’t.
People are making up stories claiming they have massive effects. The two scenarios are nowhere near the level that would effect the market in any massive way.
Let’s be clear most of these claims are from people who want people to suffer because the can’t get a house.
These article might help.
http://www.independent.ie/irish-news/almost-400000-mortgages-in-negative-equity-report-shows-29538374.html
http://www.bbc.com/news/business-26389009
UK
60 million People
25 million households
100′s of functioning banks
500,000 homes in negative equity.
Republic Of Ireland
4.5 million
2.5 million households
A few Zombie banks.
400,000 homes in negative equity
“Well done Ireland”
These articles might help.
http://www.independent.ie/irish-news/almost-400000-mortgages-in-negative-equity-report-shows-29538374.html
http://www.bbc.com/news/business-26389009
UK
60 million People
25 million households
100′s of functioning banks
500,000 homes in negative equity.
Republic Of Ireland
4.5 million people
2.5 million households
A few Zombie banks.
400,000 homes in negative equity
“Well done Ireland”
Jayo
You have answered yourself but didn’t notice. Think of all the people who own houses and then think when did they buy. It wasn’t just before 2007. So of the people owning a small portion bought at the height of the market. Of that portion how many stopped paying their mortgages. This reduces the portion that would be relatively small.
Add to the fact a tracker mortgage could mean your payments or equal to a new purchase.
@Kal – yes and while you claim you don’t know (and then claim it is not really high), you dismiss any thought of it, despite overwhelming evidence in the form of quarterly reports from – basically everywhere, where it highlights the extent of the problem.
You claim that what you “say” is form of better proof? Grand so.
Let’s also be very clear Kal – your claims are from a person who has an investment property and who relies on high rents and rising property prices to repay the mortgage/invest for your -pension or whatever particular reason you may have.
Pot – Kettle – black.
For the record, I rent, I have done so for many years – I could buy a property outright tomorow but I wouldn’t put my hard earned cash into property in this country.
I’m not looking to make any money out of anyones suffering – unlike many landlords who are price gouging and throwing people onto the streets.
Wow – just, wow.
It’s the amount of money that was borrowed Kal.
It’s the amount of people who remortgaged and invested money into more property.
A huge portion are on trackers – their payments may be equal to a new purchase now, but their loans aren’t, nor are their incomes – they are also in Negative Equity to boot.
You both have a problem sticking to what you said and want to bring in everything else. You are trying divert from what you said without any proof. There obviously is not enough people doing what you claim to effect the rest of the market.
For your information I am not relying on high rents for mortgages. I own the properties. There is nothing evil about providing a service of accommodation
@Kal – well at least we’re not explaining away a property bust, rental price gouging and a mortgage arrears crisis.
You see if you think that not enough people are in trouble, severe trouble, with their mortgages, then you obviously won’t see the effect this could have – because they don’t exist.
There is nothing evil about providing good quality, secure and affordable accomadation. Sadly, those that do this are in a very small group.
Supply and demand is something you don’t understand.
I don’t feel responsible for other people making poor choices. I also don’t blame others for my poor choices.
Rent prices are what they are you call it gauging which is just aggression. Yet you choose to rent and want to cash in on others misfortune to get a cheap house. You have no reason to be so self righteous.
Your original theories are ridiculous. I am not isolated from the world around me to the extent I only know my own situation. You can be sure I pay more tax than you.
We truly have learnt nothing.
Time to get Eddie Hobbs back from the dead and back flogging mortgages. The good times are coming, don’t miss out.
Eddie Hobbs fuelled the bubble with his buy to let portfolio ideas, while encouraging people to invest abroad in Tenerife of all places, complete madness.
Hobbs is a pioneer. Got me some great property in Eritrea. Doing very well at the moment. You’d be wise to listen to him.
Once the 20% rule comes in next year that will be the end of house sales
Wait till the q4 results are out… Next headline…. “bursting the Bubble”!
Rejoice. The boomy boom is boomier again.
Here we go again…
I see we’ve all learnt lessons from the Celtic Tiger….NOT!
Drop all those new Central Bank mortgage deposit requirements! Ignore the entire past debacle! Forget we have dozens of ‘ghost estates’ still out there sitting empty. Lets all hop on this next big property bubble and hope it doesn’t end up exactly like the previous ones! Here we go!
It could be a bubble!
It could be a bubble!
It could be a bubble!
If house prices are rising so will the property tax the government will love this it’s all bull****
So many greedy house buyers about
Ireland, from boom to bust in 1sec. Wasn’t enough to learn?
If you live in cities or commuter towns maybe but not down where I live . I live about 1 hour 40 from Dublin.
We should build more.
Yes, it is a bubble and furthermore, it’s already starting to deflate. Viewings died a death over the summer and there was no activity during the autumn.
Smart vendors closed quickly. Dumb vendors will be left holding their stock next spring.
Even a strong price rise would not restore prices to the level of 10-15 years ago. The Dublin area is an exception. Compared with non-London UK prices we are way behind the UK averages.
Sing it people…
“The circle of life…. “. Disney had it spot on. Just get used to the boom and bust cycle, c’est la vie.
I’m forever blowing bubbles! Eurozone interest rates not helping us TBH. Interest rates at 400± year lows.
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