Sunday Tribune: Mark FitzGerald Interview (All will be OK!)

Sunday Tribune

**“The sentiment about Ireland has been disproportionately negative, and maybe people were also overenthusiastic about the Celtic Tiger, but certainly some of the pessimism is completely overdone.”

FitzGerald does admit that many property price indices don’t reflect reality

That said, FitzGerald acknowledges that the orgy of easy credit which climaxed with 110% mortgages fuelling a rocketing property market is over. Permanently.

“Some of those are short-term factors. By having our own correction beforehand, you would have thought the economy would have been more affected than it is,” he said. “The truth of the matter is that the European economy is proving remarkably robust and we’re an integral part of the European economy. We’ve had the correction, it’s a double correction, and that obviously has impacted employment. It hasn’t impacted employment to the degree which I thought it might and it hasn’t affected the property market to the extent we thought it might.”
I say that because we’re going to have a greater correction, because we had a pre-subprime crisis correction.

FitzGerald recently raised his head above the parapet to say that the bottom of the market was in sight. That raised eyebrows, even within the property sector, where most people acknowledge that it will be two years at least before the market recovers.**

Some key insights here amongst the waffle

  1. So Sherry Fitz thinks the downturn has not been as bad as they would be. Just how bad did Sherrys think the market would get ???

  2. The market will return post 2010. That means Sherrys is advising the smart money to keep it in their pockets for another 2 years !!!

  3. Sherry thinks we had an orgy of easy credit and no more 100% mortgages going forward

  4. Sherrys think the property indices do not reflect reality and that the % drops have been even greater

  5. Marian and her go go canny mcsavvy investor reports has been put in the back room at Sherys at the moment for a few years. Her profile is currently falling faster than the property prices.

This concurs with a discussion with a Sherry office manager who said not to touch the property market in 2008.

Finally does anyone believe that Sherrys like for like business is anywhere near 2006 ?