For the good of Ireland as a whole should house prices rise or fall?
Primarily because cheaper housing allows salaries to be lower whilst still maintaining the same standard of living.
The side effect being better competitiveness and more jobs.
It also means those who still have to buy can do so without drowning in debt.
Rising prices don’t make the debt any easier for those who have already bought.
There are a million other reasons why lower is better e.g. less stretched banks etc
In a global economy, Fall.
The lower the better. I agree with Mr A: the benefits from a lower cost base in the economy are much greater than loss of value to property owners.
Rise, as big tide raises all boats and looking at naked swimmers is not so nice.
Sorry but I’m not going to bankrupt myself so that you can avoid looking at swimming nudes. Avoiding unpalatable sites is your own responsibility.
tear that plaster off and get it over and done with
How would that make you bankrupt? Rising property prices would surely be result of lower unemployment, strong wage inflation and unprecedented boost in productivity. If only reckless lending practices are restricted by then, we should be OK.
There’s is nothing wrong with rising house prices in an economy where the fundamentals are sound. The problem is, they are not.
For long enough the value inherent in our land has accrued overwhelmingly (disproportionally) in the hands of land owners, party-loyal speculators and developers, their associates, middle men, lawyers, other professionals, the bankers (usurious interest in this case), politicians…
This state of affairs has vastly increased inequality in our society and ensured that those lower on the socio-economic scale have had to indenture themselves to live - to pay exorbitant rents to cover their housing, eating out, the business services they require, the list goes on and on…
I can’t think of anything else in economic terms that is more constraining on our peoples’ natural productive inclinations, their creativity and joi de vivre. At least of those in the socio-economic class who do not benefit (disproportionally) from the rents and interest raised on Irish land.
It would have been better if the Banks where allowed fail but the depositors protected fully. Then “house prices” could have managed themselves and things right now would be a whole lot better.
Most likely we’d have a new government in office making some progress routing out the effects of 15 years of Fianna fail regression. Anglo woudl have imploded and we would be 20+ billion better off. NAMA itself would never have seen the light of day gotten off the ground and perhaps less people would have emigrated.
Our national debt woudl not have double or tripled. Ireland would be in a super position to finance various projects of vision that woudl redress the regression legacy of the criminal gang Fianna Fail.
Fianna fail are aggressive regressive and oppressive.
There is no good answer really . We need them to fall for the economy to become compeditive again and we need them to rise because so many people overborrowed and owe very big money to the banks . As the banks are already insolvent , this is not good news for a country which is determined to bail out the banks at all costs .
It seems crazy to me for people to be calling a bottom on the market every 5 minutes like its the stock market . Ireland has massive national debt and growing by the second . 100,000 people are predicted to emigrate next year . Unemployment is at 14 % or if you were to measure it correctly it could be around 20 % . The whole of Europe is in a debt crisis which will take years to get out of . There is no plan for job creation and almost 2 years on from the Irish banking crisis banks are still broken and dysfunctional . Anglo which is really the DOF is refusing to cooperate with the regulator ( how does that work ? )
We have a government which nobody wants and actually believes is incompetent and we have an opposition which dispite the greatest economic collapse has completly failed to make hay out of a God given opportunity .
There is massive personal debt after a credit binge of epic proportions which has been put on the long finger which nobody is addressing in any meaningful way . It could be the final nail in the coffin of the banks .
Etc , etc , etc
Really could it be any worse ? What else could go wrong ? How can people seriously talk about house prices rising ? Even if everything else was ok there is massive over supply which wil take years to work through the market .
Ether the quality of Irish housing along with the supporting infrastructure and worker productivity needs to increase so that current prices are sustainable or house prices need to fall.
If anyone has a plan for the first option I’m definitely all for it.
Jaysus, why y’all gravedigging crap topics…
Quite right. Bloody ridiculous question !
That is why they are falling down. But this is hypothetical situation, so obviously rising prices would mean excellent fundamentals. High prices means there would be lot of buyers bidding over 300k properties, and providing there is restricted access to credit, it means we suddenly become rich, cash rich If higher price levels were sustainable due to extremely good economic output we would not in trouble.
I think long term steady sustainable growth would be the best, but for now definitely falls, prices are just too high.
Yep, onwards and upwards. The sky’s the limit. The only way is up baby.
PS. Even in an economy where the fundamentals are sound, rising house prices is bad…
Fall or fail…
Imagine that everyone is so productive, that they generate 10^9$ GDP per capita so Ireland would be 4 Trillion $ economy - we could make cold fusion car engines, immortality drugs, dig gold and so on. It would be really cool, and rising house prices would be just a side effect. Do not think about Ireland now, think about Ireland as it could be in some alternative reality. I would guess we are closer to developing anti gravitation that to property price rises now…