We did a piece with Pat Kenny on his Newstalk radio show yesterday. We talked about the reasons for why property prices may face a short term volatility but that when balanced against housing need in general that the pandemic will not make housing more affordable in the long term. For that to happen we need many other things to start to resolve such as land prices, non-construction costs and planning timelines.
In Wesel, a city in North Rhine-Westphalia, the prices for a plot of land are currently between ninety and two hundred and forty euros per square meter. For smaller plots of land with a worse location, the prices range from one hundred and fifty to two hundred euros per square meter. Larger plots with a better location cost between two hundred fifty and three hundred fifty euros per square meter. In the last time there was only few changes of the prices for properties in Wesel.
In Wesel itself are only a few plots of land available so that is probably the reason for the price rises of the last years in Wesel and the area around because there are also only few opportunities to get a plot.
The house prices in Wesel currently costs an average 1.850 euro per square meter. Since 2017 the prices increased more than two hundred euros per square meter. The purchase of semi-detached houses costs an average of 317.000 euros and houses for only one family an average of 365.000 euros. The row-end houses …
The current housing prices in Dublin have been talked about extensively recently. The newest trend shows that housing prices have reached peak affordability and now some of the wealthy classes of people are having trouble affording homes. Current house prices in Dublin are more than nine times the average salary making them unattainable for the majority of people because mortgages can only be 3.5 times your salary. Additionally, these numbers have not been seen since the Celtic Tiger Era, however, the central bank has been more careful this time and increased borrowing rules unlike during the Celtic Tiger Era. Prices are now beginning to slow down because simply nobody is able to afford them.
Inflation has also cooled off recently with a decrease from 12.4% last May to 2.8% a year later. Dublin has seen a significantly smaller inflation rate with an increase of prices from the current year to May of .6%.
The region of Dublin had the highest median price of 366,000 Euros which is just over 9 times more than its average salary of 40,000 Euros. …
Disregarding the findings of all recent numbers and reports that have been recorded, Central Bank Governor Philip Lane is reported by the Oireachtas Finance Committee as saying that he is expecting house prices to fall over the upcoming 3 years.
This statement being a bold one as the figured recently released by the Central Statistics Office reports house prices to have rose in the previous month by nearly 13%.
Such a statement that if true, would be a drastic change in the housing market and would cause chaos among buyers and sellers as the stark difference between the two different scenarios.
Though Philip Lane cannot say for sure what the housing market will do in the coming years, he made his predictions based off of a few “headwinds” that are expected to be taking a hit to the market.
Specific events that many are expecting to cause a large backlash in the economy and the housing market are Brexit and the funding costs for banks.
If a negative outcome is to be the result of either of these, they should …
Ireland housing price inflation has come to be of large concern to the public as a wider gap of the housing market will likely develop. Currently, central bank lending rules have been established and are beginning to be implemented as a way to slow the rate at which it is increasing.
Housing prices are still on the rise, as they have been in many recent reportings throughout the nation in current times. With tighter bank lending now being enforced more and more at a national level, the rate of inflation throughout Ireland has been seen to finally begin to slow down.
The second quarter of 2018 reported by MyHome.ie showed a steep increase in home prices alongside the slowest pace of inflation to be recorded in over two years.
The steep prices of homes have for a while now, been on the watch by the nation as a housing shortage has been of strong concern, affecting the living standard of many citizens throughout the nation.
As asking price inflation has slowed dramatically, Dublin has been feeling some of the effects.
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The mortgage market in the UK after Brexit was announced has been shaky. With everyone not knowing how Brexit will turn out, they are weary of committing to huge financial obligations.
However, the UK mortgage market is starting to see potential buyers increase again. In May, a total of 121,464 mortgages were completed.
Total mortgage loans increased by £3.5 billion, which is the fastest pace in more than a year. Mortgage lending has increased 2.9 percent in the past year. The prediction for next years growth is 2 percent in 2017.
The slowdown in growth we can see come from the Brexit. The value of the Sterling dropping makes customers reluctant to purchase a house. This has very negatively affected the housing market in the UK.
The consumer credit card and personal loan debts have been on the rise as well. This is also causing worry from the Bank of England’s Financial Policy Committee as consumer credit continues to rise.
More regulations are going to be put in place to slow down the lending growth and another measure to be …
In speaking with several people within industry I have come across the same idea a few time, to the extent that the thought has occupied my mind and turned into this article.
The idea is that experimentation is part of progress, but that we rarely experiment with housing, in particular we rarely experiment with the ‘how’ of it. Historically it has taken calamitous events to make changes, for instance, the timber and plaster construction of Tudor homes was replaced by the brick and stone of Georgian construction only after large fires and events like the Great Gunpowder Disaster of 1597 in Dublin.
So what if we did the following: take a single street in Dublin, Cork and Galway, ideally one which is fairly ruined (there are many) and we said that for this one street that people could do whatever they wanted in terms of building anything they felt was appropriate or what they wanted to do.
That might mean you have a four storey house next to some shipping container apartments or some other weird mix, but we could …
Property cycles have always been a source of fascination for me (KD) and it’s worth briefly mentioning where we are now and where we are likely to go.
In the past I have always said that there are two broadly distinct phases, the first is a post-crash recovery where you see prices come back then rise fairly quickly before stalling.
The ‘stall’ is a mid cycle phenomenon where due to prices having risen you see a lot of buyers back off or take stock of the position, the memory of ‘we saw something like this before’ is still there to haunt them.
After that you get into the second phase where the upward momentum recommences but this time, having seen that the stall was somewhat ‘false’ (in the sense that it is perceived that way, it doesn’t actually have to be that), prices rise up even quicker.
This is unexpected (to some) and evidence that you have to ‘get in’ on the game. It brings us to the second phase which is the classic ‘boom-bust’. This eventuality is inevitable in …
We were pleased to be part of a discussion with Matt Cooper (Today FM) and Kevin Doyle (political editor at The Independent) on the topic of housing on The Last Word.
The analysis we provided was to make the point that help to buy cannot possibly be behind house price increases across the nation. We also made the point that prices would have risen even without it and that you need to look at the secular trend not just the short term ones.
Robert Shortt from RTE’s Primetime show spoke to us about the Central Bank idea of putting caps on lending in terms of the loan to value and the loan to income ratios. There is a sense in this, but we don’t believe such a crude instrument is nuanced enough to negate the downsides that such a policy brings with it. There are better ways to do this and they should be explored.