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 …