2006 Monthly % Changes Annual % Change
January +1.2 +10.2
February +1.0 +11.1
March +1.3 +12.1
April +1.4 +13.2
May +1.6 +14.5
June +1.2 +15.3
July +1.1 +15.4
August +1.0 +15.4
September +0.7 +15.0
October +0.6 +14.2
November +0.1 +13.1
December +0.1 +11.8
January 2007 +0.1 +10.6
February 2007 +0.1 +9.5
March 2007 -0.6 +7.4
April 2007 -0.8 +5.1
Check out the chart/guide for ascertaining valuations under or over.
If we could get yearly house prices & yearly rental figures for say the last 15 years we could use this chart as an objective measure I think it would serve well as a clear historical guide and lesson in property market dynamics.
That graph is exponential in its shape. A sure sign that the rise in equity was used to buy more houses thus pushing up prices which then “generate” more equity and that extra equity was used to buy more houses thus pushing up rices even further.
It was an investors market for the past 10 years. Rises in wages (and extended loan payback terms , 20 to 30 to 40 years) meant that Seosamh Bloggs could buy a piece of the housing stock). Now that other European countries are borring from the common Euro pool, it’s put an end to the madness. But something had to give. Now that interest rates have rises & are continuing to rise, its squeezing everyone with mega-mortgages.
Also, amazing how inflation in Ireland increases when the economy takes a downturn. Same thing happened in 2002.
Did prices rise by 11.8% in 2006? I have a ssneaky suspicion that prices were jacked up by developers (after the interest rate rises) to get one last final OTT payment for their houses. Some houses may have been bought at the exorbiant prices and I think that “houe prices are up” mantra throughout 2006 was because of a few straglers who bought at the vastly inflated prices.
The growth for the first quater of 2006 was revised down to 4% . There’s nothing to suggest to me at all that hosue rpices rose by 10% in 2006 (except for the fact that a few people bought at the highest possible prices).