New Research On The Current State On The Irish Housing Market Published

The Central Bank of Ireland today published new economic research, entitled 'Why are Irish house prices still falling?'

The Letter begins by assessing the current state of play in the Irish residential property market. Using over forty years of international house price data, the on-going collapse in Irish house prices is placed in an international context and comparisons drawn with previous housing busts in other OECD members. A suite of models is used to assess whether the fall in house prices is in line with what the prevailing fundamental factors in the Irish economy would suggest.

The key findings of the research include:

•The present Irish house price decline ranks as one of the most severe recorded across the OECD.

•According to a suite of house price models actual Irish house prices have fallen somewhat below the level prevailing market fundamentals would suggest. Our models indicate this fall to be between 12 and 26 per cent as of 2011 Q3.

•The main reasons cited for the continued fall in prices are the related issues of lack of investor confidence, negative future house price expectations and the uncertain macroeconomic outlook. Additionally, the requirement for substantial deleveraging within the Irish financial system and the associated issue of mortgage credit availability are also considered as significant reasons for the decline.


Related Irish News Stories
Click here for the latest headlines.

03 January 2012
House Prices Continue To Decline
Irish house prices continued to drop in the fourth quarter according to property website Daft.ie. The latest Daft House Price Report shows that asking prices for houses fell by 18 per cent in 2011. The average asking price for homes is now €175,000. Ronan Lyons, economist with Daft.
20 August 2013
Dublin Property Prices Rise But Prices Fall Nationally
There has been an 8% rise in property prices in Dublin in the last 12 months, according to the Central Statistics Office (CSO). The figures show that in July, residential property prices increased by 3.3%, an 8% increase on the same period last year. Nationally, property prices have fallen by 13.
11 January 2012
Food & Drink Exports Increase By 12%
According to new figures released today by Bord Bia, the value of Irish food and drink exports increased by 12%, or €1 billion, in 2011 to reach an all-time high of €8.85 billion. For the first nine months of the year, food and drink exports increased at three times the rate of total merchandise exports.
06 October 2015
Rise In House Prices Outside Dublin
House prices outside Dublin have increased by 13 % over the past year, according to a report by property website Daft.ie. Home buyers are now typically paying €205,000, compared to €190,000 this time last year. Prices in urban areas of Cork, Galway and Limerick are rising at a rate of almost 20% a year.
30 September 2015
Property Prices Increase Nationwide In August
Residential property price rose by 2.3% across Ireland in August, according to the Central Statistics Office (CSO). New figures from the Residential Property Price Index shows that this is a 0.9% increase from July and a 0.1% rise from June. In Dublin, prices rose by 2.8%, an 8.2% increase than the same period last year.