Property market slowdown beginning to take effect

[David Cochrane]

Estate agents have reportedly signalled that the property market is finally beginning to cool after years of soaring prices. Reports this morning say the experts warned yesterday that the first evidence of the long-predicted soft landing was beginning to emerge, with some homes seeing a drop in prices for the first time in more than 10 years. BreakingNews.ie

[zakalwe]

yet on fri there were hysterical reports that house prices were still "spiralling out of control".

the mortgage volumes and averages have remained constant for the last 3 quarters or so.

i'd be inclined to believe imperical evidence rather than heresay from the last few saturday viewings.

[MichaelHennigan]

i'd be inclined to believe imperical evidence rather than heresay from the last few saturday viewings.

I would agree.

Lending by the biggest market player PermanentTSB is up 50% in the first half of 2006 compared with the same period in 2005. Private sector lending is at a six year high and the CIF expect that 6,000 more new houses will be built in 2006 compared with 2005.

Government receipts from the housing market may rise to €9bn this year - 18.6% of total planned public spending (current and capital) and Albert Reynolds's Ailesbury Rd house is set to make €16 million. He paid €766,000 for it in 1994 and will trouser about €9 m after the completion of the purchase of an apartment in the Four Seasons' Hotel - it must be easier than making money from petfood.

As for anyone thinking of buying a new housing unit, just feel happy that you will be the victim of the mother of all stealth taxes - an average of €100,000 in payments to the Government from the current average total price of a new unit @ €291K

[woodie]

Wearing my partisan hat for once, Labour's comment is at

http://www.labour.ie/press/listing/20060703123253.html

Eamon Gilmore points out that last week's Permanent TSB/ESRI house price index showed a 1.6% increase in house prices in May and that there are mixed messages coming from industry.

[Universal_001]

This strikes me as industry propaganda there is always a lull of house buying during the summer months.

[jonna]

This strikes me as industry propaganda there is always a lull of house buying during the summer months.

True..
I am concerned at the fact that the housing market seems to be the only thing holding the economy together (and this market based on unrealistic house prices)..What will happen to our economy when the property market actually falls?

jonna

[Universal_001]

This strikes me as industry propaganda there is always a lull of house buying during the summer months.

True..
I am concerned at the fact that the housing market seems to be the only thing holding the economy together (and this market based on unrealistic house prices)..What will happen to our economy when the property market actually falls?

jonna

Massive service sector job losses, massive construction sector job losses, boarded up houses in the communter belt, massive drop in tax revenue which will mean painful cuts in social expendature.

and I wonder, since FF took credit for a celtic tiger they of course single handidly created, will they take credit for promoting policies that helped the bubble along? No, I don't think they will.

[david]

Massive service sector job losses, massive construction sector job losses, boarded up houses in the communter belt, massive drop in tax revenue which will mean painful cuts in social expendature.

...and emigration.

[georgedillon]

Uni:
"Massive service sector job losses, massive construction sector job losses, boarded up houses in the communter belt, massive drop in tax revenue which will mean painful cuts in social expendature."

Add in social conflict and violence, as Irish youths clash with Asian, African and Eastern European gangs.
gd

[david]

But will the Irish youth be here? They'll be following the money. The non-Irish may not be able to afford to emigrate.