Reply to IT webarticle on PTSB/ESRI

Sent this morning, feel free to do likewise

There is an error in the reporting of the PTSB/ESRI Sept report. The author uses the term “paid”.

The PTSB/ESRI methodology is based on valuations and has been a flaw spoken about in a number of forums, it is not a transactions based method. Therefore, using the term “paid” is misleading, indeed there is a widely held belief that prices have fallen substantially more, however we in Ireland (unlike other economies) do not have a methodology which uses transactions as the determination of house prices. Moreover, if you look at sites such as

www.irishpropertywatch.com

we will see clear evidence of much larger falls in prices.

In summary the index is based on the valuations of Estate Agents, who have a vested interest in not seeing the real drops being shown, an index based on a basket of goods like the CPI which is actually based on what people pay would be welcomed!

The average price “paid” for a house in September fell to €299,483 from €300,375 in August and was €8,696 lower than in September 2006. :wink: :wink: :wink: :wink: :laughing: :wink:

Ann Doyle on RTE news also used the “paid” word at 9pm last night.

What? Anne ‘Oompa-loompa’ Doyle is still holding the fort!

I thought she would have been usurped by Sharon ‘Strumpet’ Ni Bheolain by now…

See. This is why it is so important that the banks are stopping the mad lending practices cause the VIs own this little Island. From the government to the builders to the banks to the EAs to the investors. There are lot of powerful muppets who don’t want to hear ‘Pop’.

Ah now here! :exclamation:

I had to look up Oompa Loompa:
urbandictionary.com/define.p … a%20Loompa

  1. A native of Loompaland, usually tending towards attributes of small size, an orange commplexion, and green hair; the first recorded information of them comes to us from Roahld Dahl, the author of Charlie and the Chocolate Factory
  2. Someone who has one, or all, of these attributes; used usually as an insult or in a derogatory manner.

" John’s new girlfriend is an Oompa-Loompa."

In Irish Times today

“The index, which is based on a survey of properties for which mortgages are borrowed from Permanent TSB, measures rises and falls in house prices but takes into account the mix of properties sold in the period”

ireland.com/newspaper/financ … 84016.html