Tough times ahead for the property market

An article appeared in today’s Sunday business Post under the above title (I searched for an electronic version but couldn’t find one). It was written by Joan Henry, head of research at Savills.

She argues against the introduction of a property tax stating:

“This argument has also to be set against the background that anyone who bought since the early 2000s, or at least since the introduction of the Euro in 2002, has to face the reality that the price they would get if they either wanted to or had to sell, would differ from what they paid for it. It could mean a drop of anything up to 50% in value depending on which year they bought, how much they paid and where it is.”

What I found interesting about the article is that it is balanced, pretty negative about the market in general and makes no attempt to talk things up.

Its the first time I’ve seen an EA admit that the market is back to 2000 or 2002 levels at best. I suppose that she has better information than anyone else as to what houses are actually selling at as opposed to what they are asking for.

I say house prices will drop between 50% to 80% over the next few years. People have been rightly screwed into thinking the best thing you could do in life was to buy a house.