The 10 reasons why house prices and rents must fall
Many now realise house prices will quickly fall if sufficient numbers stop bidding or buying
It is widely accepted at least 10,000 new units of social housing are required each year to meet demand
House prices in recent years should never have been allowed to soar to the point where they have become unaffordable for the vast majority of aspiring purchasers. Rents in the private rental sector are also unaffordable for most. Vendors seeking inflated prices for their homes have been forced to reduce them, as demonstrated by recent estate agent and auction results. Here are 10 reasons why significant falls in house prices and rents are likely to occur sooner rather than later.
1. As recently reported by the Economist magazine, housing in Ireland is now significantly over-valued or, more accurately, over-priced. This over-pricing is reflected in new house and apartment prices that are now well above their peak in 2007. In fact, for over 20 years house prices in Ireland have been completely out of line with indicators such as the Consumer Price Index, the cost of building and average earnings. Despite falling for a short period after the crash, prices have climbed sharply since 2012. This dramatic escalation was avoidable and simply cannot be justified by Government.