See House Prices Are Nowhere Near A Bottom Says Analyst | Daily Ticker - Yahoo! Finance
This housing analyst argues that in many parts of the US such as New York where banks have delayed on foreclosing,house prices have yet to be hit hard. In states where foreclosures have been common,prices have fallen steeply. The root cause of price declines is the greatest financial crisis ever,even greater than the one in the late 1920s that contributed to the Great Depression.Are there comparisons to be made with Ireland's housing?
House prices in Ireland were depressed by the massive overhang of Celtic Tiger housing inventory. But there is shadow inventory too: potential sellers are unrealistically hoping for price recovery and about 20% of mortgages are in arrears.Irish banks are only beginning to foreclose on houses and a tsunami of foreclosures could be under way. That could depress prices severely as mortgage financing is scarce.
To support prices,the government will probably extend the tax break on capital gains on buy to lets beyond the year end. But if it doesn't,the residence permit given to non-EU foreigners who buy an expensive house could be the only barrier to another round of price declines.