Chaaaaarge, get in before it’s too late.
Irish House Price Correction Complete, Standard & Poors Says
By Dara Doyle
May 4 (Bloomberg) – Standard & Poor’s Ratings Services
said Irish house prices “have completed their correction.”
“It will take time–probably another couple of years–
before we see tangible signs of market activity resuming,” the
ratings company said in a report today. “We anticipate that
the U.K. and French housing markets will likely fall back
in the coming quarters, while the Spanish and Irish markets
confront continued sluggishness.”
So there will be supply but no demand for another couple of years, yet prices will not fall any further? Mmmmmkaayyy…
Linky schmink schmink?
As it’s “verbatim” I would say it’s hot off a Bloomberg terminal - probably will be on generally circulated in a couple of hours.
Will post it when it appears.
Sounds like the same old story, assuming that a sensible price is 2.5x the (joint) income of the prospective buyers, then prices are likely to still continue to fall as incomes fall back.
i guess they worked this out as the 12% increase from this time last year has cancelled out the undervaluation in the market
irishtimes.com/newspaper/bre … ing27.html
seems like an annual comedy show from these jokers.
although surprisingly lacking in any sort of wooly language
although cant find the report so may just be a joke…
OK own up, who left the lid off the prozac jar again?
We must be back to 2005 so.
Ho! Ho! Ho!
( sorry, wrong time of year for that)
One of their important clients must be trying to offload a stack of RMBS. Once they offload them the decline will resume.
What’s really astounding is that anybody will listen to S&P after the last decade (and more probably) when every piece of analysis they made has turned out to be complete rubbish. I guess it’s just another indicator that there is actually no real open market at all, and the likes of S&P are just used to provide reasoning as to why we should pay the prices we pay. It all reminds me of that scene from the Matrix: “Do not try to bend the spoon — that’s impossible. Instead, only try to realize the truth: there is no spoon.”
I like Dara Doyle,
he always tends to find some great quotes like this one from Alan Barrett
A modest suggestion for Standards are Poor:
Get a grown-up to read your reports before issuing them.
This one in the same article is also class:
Edited to delete. Too harsh
S&P Chief Econ: BOE Rate Hike ‘Almost Certain’ Within 3 Months
Wednesday, May 4, 2011
LONDON (MNI) - A rate hike from the Bank of England is “almost certain” within the next three months, ratings agency Standard & Poor’s says in a report out today on the state of the European housing market.
"Irish house prices have, in our opinion, completed their correction but it will take time – probably another couple of years – before we see tangible signs of market activity resuming.
“We think prospective homebuyers may well hold off on acquisitions for a while, given governments’ implementation of fiscal austerity plans – particularly in the U.K., Spain, and France–and central banks’ likely actions to raise borrowing costs in the next 18 months, which would halt accommodative monetary policies in Europe”.
“We anticipate that the U.K. and French housing markets will likely fall back in the coming quarters, while the Spanish and Irish markets confront continued sluggishness,” Six said.
irishtimes.com/newspaper/fin … 46665.html
House prices hit bottom, says S&P report
Thursday, May 5, 2011
THE REPUBLIC’S house-price fall has levelled off but no recovery is in sight, according to a European housing market report published by Standard & Poor’s (S&P).
The ratings agency indicated yesterday that while Irish house prices have “completed their correction”, market activity is not expected to resume any time soon. It noted that prices in Ireland have suffered the largest contraction in western Europe, falling 33 per cent from their 2010 peak.
But while the Republic has almost “fully corrected the excess of the previous housing bubble”, with current prices returning affordability to pre-2000 levels, it will be another couple of years before we see tangible signs of market activity resuming.
The agency listed oversupply as one of the key factors in the predicted sluggish recovery. It cited figures from the Bank of Ireland’s December 2010 Irish Property Review , which puts oversupply in excess of 300,000 homes and also refers to recent estimates from the Department of the Environment that indicate a much lower number of 23,000 dwellings – a figure which it says is based on a smaller survey of recently completed estates.
While I am overall mnore heartened at the Exchequer returns being on trend for 4 whole months I saw De Paper ran with this in the lead today.
examiner.ie/ireland/sp-house … 53581.html
Savills hedged their bets
S&P said in its latest report that house prices in Ireland at the end of 2010 were down 33% from their peak — the largest price contraction in western Europe since the beginning of the current crisis.
However, director of residential at Savills, Ronan O’Driscoll said house prices have fallen by about 45%.
“That said, in broad terms, our views would be in line with the S&P view that Ireland has pretty much corrected the excess of the housing bubble but depending on the location and type of property in question.”
Notably S&P are cheerier than our commentatorati…why didn’t they get a rentaquote from Dan or Austin ???