"After a decade-long boom under Ahern, Ireland's economy is likely to grow at the slowest pace in almost 20 years, according to the government's forecasts. House prices have fallen 8.8 percent in the last 12 months, homebuilding is contracting at a record pace and the jobless rate rose to an eight-year high of 5.2 percent in February."
"The numbers have been awful; even in the last few days we've had manufacturing at a five-year low,'' said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. "Maybe Ahern is leaving at the right time."
"Ahern, 56, announced his resignation at a press conference yesterday, bowing to pressure from lawmakers over investigations into gifts and cash he received in the 1990s. "
So Ireland housing 'tiger' is coming to an halt. It would have been impossible to think only one year ago that prices could go down. Most of the people priced in the usual linear growth. Welcome back to reality, greed is now being taken by fear thus leading a downward correction of the Irish Housing Market.
That is one of many dominos bound to fall, more likely the other will come in the month ahead, Spain-UK-France : starting from the west then spreading to the center (Danmark, Belgium, Switzerland...)then to the east (Sweeden, Norway, Finland, Estonia (it's already in a free fall))..a perfect domino chain....
1 comment:
Even now the Irish are in total denial. Dublin house prices are more expensive than Manhattan or Beverly Hills. 30% over valued? More like 70%.
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