Irish property prices 2012 at bottom, property too cheap

Sceala Philosopher Location: Dublin

What do you think about the claim from the central bank - That Irish property prices have fallen too far, Irish homes are now valued too cheap.
Good news for Germans property speculators, they can now move back into Ireland and the too cheap Irish market, with the prospect of speculative profits from their Irish holiday homes.
No wonder the Germans rent in Germany itself.

Over correction in Ireland, Irish property prices are too low,
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The Central Bank has said that Irish property prices have over corrected by between 12% to 26% compared with the fundamental value of properties.
The bank suggests that a lack of consumer confidence and expectations about further price falls is holding back purchases.
It also said that a lack of mortgage finance from banks is restricting market activity and price levels.
The bank warns that any immediate revival of the sector still appears to be some way off. Irish Community Images

Shows how bad the economy of the EU is.

Property price researchers claim Irish homes are now too cheap
Irish Community Images

The bank’s researchers used four separate models to assess property prices for the research.
One model found that prices were 26% below what economic fundamentals in the economy would warrant. Two other models found that prices were 16-18% undervalued.
A fourth model suggested that they were under valued by 12%.
The Central Bank said that as it enters its fifth year, the severe downturn in the residential property market has already become one of the OECD's largest and most protracted. Irish Community Images

CSO decline of Irish property prices
Irish Community Images

The CSO's residential property price index showed that the decline in value since the peak of the market in 2007 was over 47%.
The research pointed out that Ireland's housing prices have fallen for 16 quarters in row, but this compares to 82 quarters in Japan and 41 quarters in Switzerland. Irish Community Images

New Mortgages in Ireland
Irish Community Images

It also noted that just 11,000 new mortgages were issued last year, down from 110,800 in 2006. It said that almost 10,500 housing units were built last year, down from 14,600 in 2010. At the height of the housing boom about 93,000 houses were built in 2006.
The Central Bank pointed out that a positive trend in the housing market is the fact that affordability has improved in recent years, but it adds that the imposition of tighter credit conditions by the banks could diminish much of this benefit. Irish Community Images

Which effectively means - wealthy natives and foreigners are set to benefit most, again - and at the expense of the general population who pay for the discounts in cash and pain.

Updates
House prices continued to fall in the second quarter of this year, according to two new surveys published today.

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Daft.ie and Myhome.ie house price surveys still seeing fall in asking prices
Daft.ie and Myhome.ie house price surveys still seeing fall in asking prices
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Morning Ireland: Reports show falling property prices - Justin Gleeson & Annette Hughes
Morning Ireland: Reports show falling property prices - Justin Gleeson & Annette Hughes

However, the price reports have found that the rate of decline has stabilised in Dublin with price rises recorded in some parts of the capital.

The Daft.ie survey for the months of March to June found that prices in the capital fell by 1.2% with mainly stable prices also recorded in the Cork and Waterford city areas.

In Galway and Limerick, city prices fell by between 3.4% and 3.9%, with the national average asking price at €172,000 - 53% below the peak of the market in 2007.

The Myhome.ie survey shows a decline in prices nationally of 3.2%, but with some areas of Dublin recording price increases.

Based on a mix of asking prices nationwide, Myhome.ie says the average price of a house is now €212,000 - down 49% from the final quarter of 2006. In Dublin, prices are down by 56% over the same period.

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Irish property prices 2012 at bottom, property too cheap