Warning that house prices may fall by 80%

Senna

HOUSING MARKET: IRELAND WILL see more demolition than construction of houses over the next decade, as the economy struggles to recover from the collapse of the housing market and the emergence of “zombie” banks, UCD economist Morgan Kelly told the conference.

In a presentation that drew several collective intakes of breath, Mr Kelly predicted that house prices would fall by 80 per cent from peak to trough in real terms.

“Construction, but not demolition, of residential and commercial property will fall to zero for the foreseeable future,” he said.

Low levels of education among those employed in construction – where worker numbers peaked at about 280,000 – meant retraining would not be straightforward.

Recovery will be slow: “It has taken us 10 years to get into this situation – it will in all likelihood take us 10 years to get out of it.”

Mr Kelly said he had been hailed as being extremely prescient as a result of his warnings in relation to the property bubble, when in fact he and a handful of other “amateurs” were merely stating what was obvious.

Sparing no blushes, he said professional economists in the Central Bank and the Economic and Social Research Institute “need to look very closely at their analyses of the Irish economy and figure out what went wrong”.

Mr Kelly said Ireland’s “reputational capital” had been damaged by “chancers” such as ex-Anglo Irish Bank chairman Seán FitzPatrick, who had been abetted by “buffoons” such as former financial regulator Patrick Neary, Minister for Finance Brian Lenihan and the Taoiseach.

In discussing the €110 billion given in loans to developers, Mr Kelly said a typical regional housing collapse in the US saw banks sustain a 20 per cent loss on these loans, but the narrowness of the Irish market increased the risk of “substantially larger losses” for Irish banks.

“The guarantees of Anglo and [Irish] Nationwide liabilities have a strong chance of being called in over the next 21 months,” he said. Extending the Government guarantee to these two financial institutions was “extraordinarily unwise” and could produce losses that the State cannot afford to repay.

The global financial crisis may have been positive for the Irish economy as it “stopped us dragging ourselves even deeper into our hole,” he said. “If it had taken another year or two, we would have ended up in an Icelandic-shaped hole, which is not to say that we won’t end up in one.”

Mr Kelly said the Government should abolish stamp duty on property, compile proper price and quantity statistics and restore competitiveness through a public sector pay cut of 10 per cent.

A paper by TCD economist Patrick Honohan on the banking crisis argued that capital injections in the banks were a prerequisite for recovery. The financial regulator needed to decide now which banks had systemic importance to the economy – in other words, are “too big to fail”, and which are “zombie” banks.

“The goal is to avoid the continued operation of an undercapitalised, error-prone bank with a flawed business model and administrative practices, a problematic customer base and a compromised management facing distorted incentives,” the paper stated.

http://www.irishtimes.com/newspaper/finance/2009/0113/1231738220759.html


Morgan Kelly who has been right all along, is making some bold predictions and i would say he'll be right again with this one. Some house will be sold for 80% of the 2006 price, but i cant see all areas dropping that much. 60% is inevitable across the board.

I would hope no houses will be demolished, i know it'll be the ones in commuter towns in the middle of no-where, but still there are 80k people on the waiting list for social housing.

ntlbell

buffoons lol

who_ru

I find outragous that there are over 60k people on the waiting list and anything up to over 100,000k houses lying empty around the country.

the previous gubberment under aherne very nearly spent this country into oblivion. with greater unemployment (consevative figures suggest 100,000 job losses this year), net migration (already well under way), enormous over supply of housing stock, then i would expect 60% drop in house prices to be very realistic.

we simply have got to get in into our thick greedy irish heads that high property prices are and have been a disaster for this country. our competitiveness has been destroyed by the fact that higher house prices have created higher wage demands to pay high mortgages, thereby shipping jobs out of the country, we also have the highest industrial electricity prices in Europe, further eroding competitiveness. i could go on but what's the point we will probably never come off the property drug, we're just too short sighted. everyone laughed and ridiculed George Lee & Morgan Kelly when they said the property bubble (it was never a boom) was going to explode and ruin this country. Who's laughing now?

dny123456

who_ru wrote: »

Who's laughing now?

Nobody.

themadchef

Might be a completly stupid question but, why would they demolish houses? Old run down ones yeah... but houses in general?

Mrs OBumble

themadchef wrote: »

Might be a completly stupid question but, why would they demolish houses? Old run down ones yeah... but houses in general?

That's just sloppy journalism.

The man is saying there will be little, if any, construction.

There will still be some demolition though. Think about very old houses that are coming to the end of their natural lifespan, or ones that are to be replaced by new roadways (those that are going ahead despite the recession).

johndaman66

Wow, falls of up to 80% seems absolutely enormous. Is this a realistic expectation or just the worst case scenario (best case scenario for prospective buyers maybe)? Would such a drop in house prices only be for houses you would not to live to in anyway miles from anywhere and in general house prices may not drop by such a high percentage?

Am presently intending to buy towards the end of 2009 but after reading such articles may hold off longer. Know from what has happened over the last few years it not a good idea to try an predict the market and there is much conflicting speculation out there. Can anyone really provide a sound basis for if and when we should expect to see prices hit these low levels other than idle speculation

Duckjob

johndaman66 wrote: »

Wow, falls of up to 80% seems absolutely enormous. Is this a realistic expectation or just the worst case scenario (best case scenario for prospective buyers maybe)? Would such a drop in house prices only be for houses you would not to live to in anyway miles from anywhere and in general house prices may not drop by such a high percentage?

Am presently intending to buy towards the end of 2009 but after reading such articles may hold off longer. Know from what has happened over the last few years it not a good idea to try an predict the market and there is much conflicting speculation out there. Can anyone really provide a sound basis for if and when we should expect to see prices hit these low levels other than idle speculation

Well nobody has a crystal ball, so everyones opinion is based on speculation really. That speculation ranges from reasoned opinion based on hard facts in some cases, to emotive waffle in others.

Our bubble is somewhat unique in that is popping against a backdrop of what looks to be a historically crippling world economic crisis. Add into that that in a recession, world trade becomes much more competitive, and that we have spent the last 10 yrs becoming fat and lardy (economically as well as physically). Now stir in the fact that our policitions have not one iota of the complete direction change that is needed to put ourselves but on track to prosperity, and are doing nothing other than mouthing platitudes and meeting the mutlinationals as they head for the door as PR exercises. I'm sad to say that I think we have a long way to go and a lot more jobs to lose before we figure out how to turn this around.

IMO how hard prices fall depends on how deep this recession cuts. I personally believe (Ms Sth Carolina ) that due to Irelands extra feeble economic position heading into the world recession, somewhere between late 2009 and 1st half 2010 will represent the buying opportunity of a lifetime for those with good deposits who are still able to raise a mortgage.

dny123456

Duckjob wrote: »

somewhere between late 2009 and 1st half 2010 will represent the buying opportunity of a lifetime for those with good deposits who are still able to raise a mortgage.

That's the key phrase in your posting (which I agree with btw). Who will still be able to raise a mortgage? No-one in the private service for certain and now looking like public service are fairly shaky. People are going to be locked out from buying and people who already have properties will be locked into keeping them. It's good for no-one.

cooperla

I heard a report on the radio of a report suggesting a 10% drop this year. It's hard to know who to believe but I cannot believe 80%. I just don't see how home owners would accept this. For whatever reason some people will be forced to sell or give up their home but I'd think the vast majority of owners will wait until to market improves.

The recession/credit crunch, or whatever you want to call it will eventually turn around. It only takes one or two quarters of good news (I have no idea when that will happen though) before we all feel better about ourselves and start looking positively about housing again.

I bought in 2006, which in retrospect was probably the worst possible time and my flat in worth many thousands less than what I paid. That said, I'm not overly bothered about it at the minute. You live and learn.

I believe (someone correct me if I'm wrong) that some statistics are showing that overall we are paying down our debts and putting money into our savings accounts over the past year or so. This, along with a reasonable drop in house prices should have a positive effect on home buyers when things pick up again - less debts + more savings = easier to approve mortgages. Doesn't it?

El Stuntman

cooperla wrote: »

I heard a report on the radio of a report suggesting a 10% drop this year. It's hard to know who to believe but I cannot believe 80%. I just don't see how home owners would accept this. For whatever reason some people will be forced to sell or give up their home but I'd think the vast majority of owners will wait until to market improves.

flawed thinking I'm afraid

what about all the people who have to sell? i.e. they took out jumbo mortgages in 2002-2006 and have now lost their jobs, they can't pay the mortgage and are effectively bankrupt.

They will have to 'accept' whatever the market clearing price is. Nobody knows what that is at present (except for the Govt and they ain't telling). All we know is that present asking prices are a work of fiction and those few houses that are selling are being sold way below these levels.

If I was offering on a house at present, I'd offer at least 40% below asking.

cooperla wrote: »

The recession/credit crunch, or whatever you want to call it will eventually turn around. It only takes one or two quarters of good news (I have no idea when that will happen though) before we all feel better about ourselves and start looking positively about housing again.

agreed, nothing lasts forever

however, we just have to work ourselves out of our debt overhang and our massive oversupply first. That will take a generation at least. Welcome to the multi-generational mortgage.

cooperla wrote: »

I bought in 2006, which in retrospect was probably the worst possible time and my flat in worth many thousands less than what I paid. That said, I'm not overly bothered about it at the minute. You live and learn.

I admire your sanguine approach.

What happens if you lose your job?

cooperla wrote: »

I believe (someone correct me if I'm wrong) that some statistics are showing that overall we are paying down our debts and putting money into our savings accounts over the past year or so. This, along with a reasonable drop in house prices should have a positive effect on home buyers when things pick up again - less debts + more savings = easier to approve mortgages. Doesn't it?

eventually, first we need to pay down a lot of the 400 BILLION of loans to individuals that were taken out over the last decade of madness. Any idea how long that will take? A generation.

sorry to be so gloomy but nothing irritates me more these days than wooly-headed optimism that wilfully ignores reality. We've seen enough of this in Government.

gurramok

You're way too optimistic cooperla.

Private sector debt is €400bn, reputedly the highest per capita in the globe, if not among the highest.
The Irish situation regarding recession is both domestic and global. It will help when global picks up but it will not lead to a recovery due to govt mismanagement domestically.
The vast majority of owners as you put it will be waiting years for the market to improve as there is nothing there economically on the domestic front to prove otherwise. They have no choice.
You're forgetting, most do not care what price their house goes for as most did not buy in the bubble, and its a minority of a minority who bought at the peak who are screwed if they wanted to move.

I strongly believe that the 2006 price you paid may never be seen again in our lifetime, it's that bad the situation was allowed to develop.
Of course, if the govt help create a few new homegrown exporting industries in the next 10 yrs then along with straightening out the public finances, we might see an improvement domestically sooner, but don't bet on it.

A few do have savings that want to buy hence mortgages will still be issued, its only a few i'm afraid that are prudent.

cooperla

El Stuntman wrote: »

flawed thinking I'm afraid

what about all the people who have to sell? i.e. they took out jumbo mortgages in 2002-2006 and have now lost their jobs, they can't pay the mortgage and are effectively bankrupt.

I do accept that some people will be forced to sell and acknowledged such in my original post.

El Stuntman wrote: »

They will have to 'accept' whatever the market clearing price is. Nobody knows what that is at present (except for the Govt and they ain't telling). All we know is that present asking prices are a work of fiction and those few houses that are selling are being sold way below these levels.

If I was offering on a house at present, I'd offer at least 40% below asking.

agreed, nothing lasts forever

however, we just have to work ourselves out of our debt overhang and our massive oversupply first. That will take a generation at least. Welcome to the multi-generational mortgage.

Which is one of the reasons I'm not worrying about it too much - alot of us needed to learn the hard way that the speeding spree we've been on for years was unsustainable. Hopefully this lesson will benefit us when we eventually come out on the other side of this.

and 40%.. sold;)

El Stuntman wrote: »

I admire your sanguine approach.

What happens if you lose your job?

If I lose my job then I look for a new one. I know this is a simply answer but it is the only answer in my opinion. Even in the most trying of times there are jobs available. It will likely take longer to find a new job than a couple years ago and the pay may be less but there's still jobs to be had.

El Stuntman wrote: »

eventually, first we need to pay down a lot of the 400 BILLION of loans to individuals that were taken out over the last decade of madness. Any idea how long that will take? A generation.

sorry to be so gloomy but nothing irritates me more these days than wooly-headed optimism that wilfully ignores reality. We've seen enough of this in Government.

Anytime I hear comments from politicians about the economy on the news I generally end up screaming at the tele or radio so I agree with your government comment. I don't think I'm overly optimistic though. I recognise the situation we're in and have taken steps to try and make sure I'm as prepared as I can be by sorting out my own financial situation. The one thing I'm not prepared to do is to worry myself to death or send myself into depression worrying about what may or may not happen - it's not the nature of the beast.

The main point I was trying to get across in my original post was that I don't trust anything so called experts say about our economy as most get it wrong. Everyone seemed to be too optimistic during the boom and now everyone seems too negative imo.

cooperla

gurramok wrote: »

You're way too optimistic cooperla.[/qutoe]

seems to be the concensus:D

gurramok wrote: »

Private sector debt is €400bn, reputedly the highest per capita in the globe, if not among the highest.
The Irish situation regarding recession is both domestic and global. It will help when global picks up but it will not lead to a recovery due to govt mismanagement domestically.
The vast majority of owners as you put it will be waiting years for the market to improve as there is nothing there economically on the domestic front to prove otherwise. They have no choice.
You're forgetting, most do not care what price their house goes for as most did not buy in the bubble, and its a minority of a minority who bought at the peak who are screwed if they wanted to move.

Point taken. Many can sell today and still make a profit. But if they didn't sell a couple years ago it would seem reasonable to me that most bought a home and not a house for investment purposes.

gurramok wrote: »

I strongly believe that the 2006 price you paid may never be seen again in our lifetime, it's that bad the situation was allowed to develop.
Of course, if the govt help create a few new homegrown exporting industries in the next 10 yrs then along with straightening out the public finances, we might see an improvement domestically sooner, but don't bet on it.

A few do have savings that want to buy hence mortgages will still be issued, its only a few i'm afraid that are prudent.

I accept that what I paid for my flat is a figure that I'm likely to never see returned. I was fully aware at the time however that this was the case and bought because of my personal situation rather than thinking "I have to get on the property ladder now". I have no figures but I suspect I'm in the minority in this respect - most people who bought in 2006 are probably looking back and saying "s**t, should have waited another couple years".

Again, although I sound overly optimistic, it's only because I've decided not to worry about what I have no control over. I've made changes to my lifestyle in order to try and prepare for some of the possible negative outcomes and carried on with my life.

As far as the price of housing go, I am expecting a big drop in value - more than the 10% I heard on the radio but less than the 80% that started this thread - somewhere around 19-20%. That's my opinion, for what's it's worth:)

ZYX

gurramok wrote: »

I strongly believe that the 2006 price you paid may never be seen again in our lifetime, it's that bad the situation was allowed to develop.

All depends how long the recession lasts. If you compare us to the UK over last 30 years.
http://www.housepricecrash.co.uk/graphs-average-house-price.php

You can see in 1979 house prices fell 20% then rose almost 100% over next 8 years, then fell 40% and rose 150% over next 10 years. Now they are falling again. It is the nature of the beast. I was in UK during 80s crash. At one stage, where I was in North of England, many houses were cheaper than a second hand car I owned. Everyone said houses would never rise again, they did.

jmayo

cooperla wrote: »

If I lose my job then I look for a new one. I know this is a simply answer but it is the only answer in my opinion. Even in the most trying of times there are jobs available. It will likely take longer to find a new job than a couple years ago and the pay may be less but there's still jobs to be had.

... I don't think I'm overly optimistic though. I recognise the situation we're in and have taken steps to try and make sure I'm as prepared as I can be by sorting out my own financial situation. The one thing I'm not prepared to do is to worry myself to death or send myself into depression worrying about what may or may not happen - it's not the nature of the beast.

The main point I was trying to get across in my original post was that I don't trust anything so called experts say about our economy as most get it wrong. Everyone seemed to be too optimistic during the boom and now everyone seems too negative imo.

Not wishing to rain on your parade but forget about how you could get jobs over the last 10-15 years.
May I ask when you left school or college ?

Sadly we are probably going to have unemployment rates back to bad old days of the 80s.
Except this time there will probably not be any Dells, Microsofts, Intels coming over the horizon to kick start our economy and the Celtic Tiger.
Our competitiveness is shot to sh**.
We have lost a huge amount of old indigenous industry, the likes of Navan carpets, Fruit of the Loom in Donegal, Dubarry shoes, Irish Sugar, etc etc.

IMHO this is going to be much worse than the 80s.
In the 80s we had no expectations, most of us assumed we would have to emigrate, if we weren't lucky enough to get job in public sector or one of the few steady employers in private sector, some of which are no more.

There was not huge personal debt in the 80s, people with jobs bought the odd new car, cheap ones or ones with good resale value at that, not many BMWs or Alfas around in those days.
The only loans people had were mortgages with upto 17% interest rates, no 40 year 100% jobies back then, and maybe car loans.

In the 80s we hadn't experienced huge growth and wealth, we were not used to things.
As they say "You don't miss what you never had".
A lot of people are in for a hell of shock in this country and I wonder if they are really prepared for the days when foreign holidays, credit cards, mobiles, cable, broadband are considered expensive luxuries.

EDIT:
ZYX, FFS stop comparing us to Uk, Finland, Japan or some other country that had a property bubble. As bulls always said we are different and in the severity of this bust we definetly are.
We are much worse off, we were much more dependent on property (as can be seen form buget deficits), the world's economic outlook is far worse than some of the times other countries were coming out of their bubbles and we have shag all indigenous industry or capital to keep us going and kick start a revival.
Added to that we are led by a bunch of muppets.

ZYX

jmayo wrote: »

EDIT:
ZYX, FFS stop comparing us to Uk, Finland, Japan or some other country that had a property bubble. As bulls always said we are different and in the severity of this bust we definetly are.
We are much worse off, we were much more dependent on property (as can be seen form buget deficits), the world's economic outlook is far worse than some of the times other countries were coming out of their bubbles and we have shag all indigenous industry or capital to keep us going and kick start a revival.
Added to that we are led by a bunch of muppets.

In UK prices fell in real terms 75% from 1989 to 1995. Considering this thread is about prices in Ireland falling 80% I think the comparison is fair. As I said at the start it depends how long recession goes on for.

crocro

cooperla wrote: »

I heard a report on the radio of a report suggesting a 10% drop this year. It's hard to know who to believe but I cannot believe 80%.

He predicts a drop of 80% in the real price of houses so you have to take inflation into account. House prices have been dropping around 10% a year for the past 2 and 1/2 years. Meanwhile inflation has been 4-5% a year during that period. SO we have already seen a 40% real drop since peak. If it continues at the same rate for the next 2 1/2 years then we'll see another 40% off the real price. So it's not impossible.

jmayo

ZYX wrote: »

In UK prices fell in real terms 75% from 1989 to 1995. Considering this thread is about prices in Ireland falling 80% I think the comparison is fair. As I said at the start it depends how long recession goes on for.

The fall might be fair to compare, but in your original post below you also worked in how prices went back up which I find the misleading thing.
If you think our prices in 8 years will be back to the rediculous levels they are were at the peak then I would bet you would be wrong.
What I am arguing is that it is no use comparing us to anyone else because our circumstances are different, if anything they are far far worse.
Some others on other threads have compared us to Finland and even Japan.

Fair enough you are an opitmist, but do not base your opitmism on the fact that some countries that had busts bounced back quickly, becuase those same countries had a lot more going for them.
You did rightly point out that a lot will depend on long the recession lasts, particuarly how long the US is in recession.

ZYX wrote: »

All depends how long the recession lasts. If you compare us to the UK over last 30 years.
http://www.housepricecrash.co.uk/graphs-average-house-price.php

You can see in 1979 house prices fell 20% then rose almost 100% over next 8 years, then fell 40% and rose 150% over next 10 years. Now they are falling again. It is the nature of the beast. I was in UK during 80s crash. At one stage, where I was in North of England, many houses were cheaper than a second hand car I owned. Everyone said houses would never rise again, they did.

ZYX

jmayo wrote: »

The fall might be fair to compare, but in your original post below you also worked in how prices went back up which I find the misleading thing.
If you think our prices in 8 years will be back to the rediculous levels they are were at the peak then I would bet you would be wrong.
.

I never said house prices would be back to 1996 levels in 8 years. I was simply illustrating how prices go up and down. I was replying to Gurramok who said
"I strongly believe that the 2006 price you paid may never be seen again in our lifetime"
If you estimate that the average person on this site will live another 50 years (average person under 35 years old), then I believe that not only will prices have reached 2006 levels in that time, they will have fallen again, risen again, fallen again and probably have risen again over that time. As I said it is the nature of the beast.

cooperla

jmayo wrote: »

Not wishing to rain on your parade but forget about how you could get jobs over the last 10-15 years.
May I ask when you left school or college ?

I wasn't born in Ireland. I came from a country in which the region I lived in had an unemployment rate of between 17-20% for more than a decade. Even at such a high rate, those people who wanted full time jobs found them. I fully comprehend what is required in looking for a job in a country with a high unemployment level.

I know what it's like to send out dozens and dozens of CVs and attend 10-20 interviews over a couple months before getting a job.

BTW I finished college in 1999 and took a job in Ireland a year later so I could see Europe. Was only meant to be here for a year but thinks change and I've settled here (that's for a different thread though).

gurramok

ZYX wrote: »

I never said house prices would be back to 1996 levels in 8 years. I was simply illustrating how prices go up and down. I was replying to Gurramok who said
"I strongly believe that the 2006 price you paid may never be seen again in our lifetime"
If you estimate that the average person on this site will live another 50 years (average person under 35 years old), then I believe that not only will prices have reached 2006 levels in that time, they will have fallen again, risen again, fallen again and probably have risen again over that time. As I said it is the nature of the beast.

I think i was not thinking of another 50 years, i was coming from a personal viewpoint before retirement so make that 30 years

The UK's prices caught up on the bounce back because they had real industry and lowish unemployment rates < 10%. Finland was similar.
If Irish unemployment hovers around 13-20% for the next 30 years depending on who you believe, then that 2006 price would be in the history books for the schoolkids to study about.

However, if the economy bounces back on real industry generating wealth, not based on easy credit, with a healthy demographic and with low unemployment even at a healthy 6%, then of course i reckon that 2006 price will come back sooner.

Too many factors weigh against the optimist though, national income needs to decline alot to get competitive again, just a pity the govt wrecked us for a generation.

ravendude

crocro wrote: »

He predicts a drop of 80% in the real price of houses so you have to take inflation into account. House prices have been dropping around 10% a year for the past 2 and 1/2 years. Meanwhile inflation has been 4-5% a year during that period. SO we have already seen a 40% real drop since peak. If it continues at the same rate for the next 2 1/2 years then we'll see another 40% off the real price. So it's not impossible.

...bear in mind we're entering a phase of low inflation and probably deflation. While the above is true, inflations in the coming years will not have as much impact

Fighting Irish

good, its about time

lol @ people buying farty houses for 300K

jmayo

cooperla wrote: »

I wasn't born in Ireland. I came from a country in which the region I lived in had an unemployment rate of between 17-20% for more than a decade. Even at such a high rate, those people who wanted full time jobs found them. I fully comprehend what is required in looking for a job in a country with a high unemployment level.

I know what it's like to send out dozens and dozens of CVs and attend 10-20 interviews over a couple months before getting a job.

BTW I finished college in 1999 and took a job in Ireland a year later so I could see Europe. Was only meant to be here for a year but thinks change and I've settled here (that's for a different thread though).

A belated welcome to Ireland
Unlike some others, especially on some other threads around here, I gladly welcome foreigners. Our gene pool was too damm limited.

The problem was and sadly may be again that there just aren't any jobs out there and you might have to send out hundreds of cvs and might get the odd interview. Sadly with Ireland also it is not what you know but who you know :rolleyes:
The level of emigration in parts of this country was huge.
Out of some classes leaving secondary schools, only about 5-10% managed to stay around. What was really sad about the late 70s and 80s was it wasn't just uneducated that were leaving, it was our educated as well.

ZYX wrote: »

I never said house prices would be back to 1996 levels in 8 years. I was simply illustrating how prices go up and down. I was replying to Gurramok who said
"I strongly believe that the 2006 price you paid may never be seen again in our lifetime"
If you estimate that the average person on this site will live another 50 years (average person under 35 years old), then I believe that not only will prices have reached 2006 levels in that time, they will have fallen again, risen again, fallen again and probably have risen again over that time. As I said it is the nature of the beast.

ZYX, nobody is arguing that eventually prices will work their way back as value of money changes, but most people are talking about 50 years and even then when you work out for inflation relative values will not be the same.

You keep citing examples of how UK and Finland bounced back quickly and then in case of UK cycled again.
You are comparing apples with oranges when you compare Ireland to anywhere else. These countries had more established economies, native industrial and capital bases, and the world economy was not in such bad shape.
All bulls always said ireland bubble would be different.
Well the bubble wasn't, but the bust is definetly different in that it has nearly taken the entire economy with it.

x in the city

Are some of the 'deadly' sins

our estate agents, landlords, property developers etc got far too greedy and for a small nation of our size we were spending far beyond our means and house prices were ridiculous, now that the wheel of good fortune has spun a full 360 degrees we now see the mess we are in.

Today my friend said house prices in Ballybunion Co Kerry were as expensive as San Francisco a few years ago and he was not at all surprised to see the mess we are in.

Greed.....!