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Household wealth at highest level since 2008

  • 07-05-2015 5:05pm
    #1
    Hollister11
    Closed Accounts Posts: 5,482 ✭✭✭


    http://www.irishtimes.com/business/personal-finance/household-wealth-at-highest-level-since-2008-1.2203542

    The wealth of Irish households is now at its highest level since late 2008, new figures from the Central Bank show, thanks to rising property prices.
    According to figures from the Central Bank, the net wealth of Irish households rose to € 600.8bn, or € 130,331 per capita, during the fourth quarter of 2014, up by 4.3 per cent. While rising property prices were a key driver in resurging household wealth, the figures show that Irish households are now actually less dependent on property, and financial assets account for a higher proportion of wealth. Some €1.24bn was invested in financial assets in Q4, the highest level since Q3 2013. During Q4 2014, households largely used their savings to reduce debt (€ 1.4 billion) and to invest in home renovations (€ 1.5bn). Household wealth has now risen by 33.2 per cent since its lowest level in Q2 2012.



Comments

  • #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    To be honest- I'd classify this as a 'non-news item'.
    The 'household wealth' is a poor measure of anything other than the increase in house prices. It does not factor in whether, or not, people's net income has increased (which by and large it hasn't). It doesn't factor in whether there is a reasonable expectation of a rise in people's standards of living (which there isn't).

    A significant proportion of Irish homes- are owned outright- and are free of any debt. These people are seeing their net assets increase- and no commensurate debts weighing down on them. These are the generation of 70+ and 80+ people who feel its a good time to go out and buy that high end Merc or Volvo (some of the staff in dealers are fondly recounting tales of this age group and their new found antics buying cars.........

    The price of houses- means very little- unless you are actively buying or selling property. This salient point cannot be over emphasised.


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