We were asked to take part in an interview on Primetime about house prices and whether or not they were starting to show signs of falling. Our view is that they will fall in time (probably in a damaging way) but that it won’t be soon because supply is still above demand and price indicators like rents are still rising. This is damaging for first time buyers and those stuck paying high rents.
The Today Show with Sean O’Rourke had us on to discuss an article written by Charlie Weston in the Indpendent about the strong level of cash buyers in the Irish property market. Marie Sherlock from Siptu the trade union was also on, what followed was a robust conversation where there was some interesting debate but also a lot of agreement on the problems, symptoms and solutions to the ills of the Irish property market.
We were pleased to see our points about property tax on the Tonight Show on VMT given time to get worked through. The full show is available online at Virgin Media.
"If your income went up 100% would you want more tax money? Of course you would. So stop being hypocrites." – @karldeeter disusses property tax and asset millionaires. #TonightVMT
The Tonight Show, Monday to Thursday at 11pm on Virgin Media One. pic.twitter.com/Cl2cYxpxXW
— The Tonight Show (@TonightVMTV) January 15, 2019
(click into the blog post for the video) We were really happy about taking part in panel on the Late Late show on RTE to discuss the rented sector and some of the issues being experienced in it at the moment.
We took part in a panel discussion about the ‘take back the city’ campaign. While we are in favour of solutions to housing shortages, taxing dereliction and land, we are not in favour of taking people’s property. This has to be balanced against why property rights were established in this country and we also questioned why they went after private property rather than the abundant and abandoned state owned property which includes council owned homes that are not being used.
Comedian Deirdre O’Kane and Karl Deeter were on Matt Cooper’s ‘Last Word’ last week to take part in the ‘Friday Panel’ which is a segment of the show that goes through the big stories of the week. There were lots of topics covered, presidential elections, property protests and parenting tips!
Newstalk’s ‘Lunchtime’ with Ciara Kelly did a piece on new wealth statistics issued by the Central Bank which featured Karl Deeter from Irish Mortgage Brokers. It looked at the average wealth per person in Ireland and the point was made that property was a very large component of it. Other things that affect wealth were also discussed as well as some of the problems around using ‘averages’ to describe anything.
As we track the Irish mortgage market, the soaring prices are blamed much on the shortage in supply alongside a growing demand.
The law of supply and demand dictate much of what happens in the economy and the many financial phenomena in which are seen.
This, being a large reason as to why the supply and demand law is being blamed for much of what is happening in the Irish housing market today.
To do an analysis on what actually caused the flawed market that there is today, it is important to study the market as it was in 2006. The market boom before the bust.
In 2006, home construction was at peak levels, with nearly 90,000 homes built. With a population of just around four million, that is an impressive number for home production to occur.
This, however, is where the law of supply and demand began to become of question.
As homes were on the rise and an increase in supply was seen, prices continued to rise as well. The opposite of what the supply and demand law …
Ireland as a whole is eagerly waiting for each month to come, and new statistics to be published. Statistics in regards to the housing market and what can be expected by the next months’ forecasts.
It is with eager thoughts that positive reports mean future gains and future gains mean economic development and of course, citizens of Ireland to get into their homes.
A country with many living in a distressed state as they give up their dreams of home ownership or settle for someplace they simply don’t want, these reports sit a little heavy.
With every new reported couple/persons in the home buyer cluster there comes a story as to why they aren’t following their initial plans.
Maybe they can’t afford their dream home, the supply of homes isn’t available in their price range, or they gave up after years of looking to move into a one bedroom apartment, costing the same amount as a small home. The overlapping theme, unfulfilled.
Most individuals are hoping for the stats to tell them that the country is …
Recently released at the beginning of July 2018 was the housing price report for Q2. Though little differences appear on the surface, there are few small signs signaling a positive overall change in the market.
Home sale prices are currently up when compared to those of just three months to a year previous. This statistic is proven accurate for nearly all parts of the country, that is, with Donegal being an exception. Donegal typically is the outlier of the counties as Brexit is being found to have a strong impact on their housing market.
Because the housing market is still showing sign of increased demand coinciding with a weak development of new homes, it is predicted that the prices will continue to grow. However, with this most recent report from draft.ie, we see that the overall trend may be slowly changing as prices are only 5.6% higher than the current 0% inflation, being the lowest rate of inflation reported in nearly four years.
The last time Ireland has seen a similar situation to the one currently facing the economy was …