Categorized | International

Housing Prices in Ireland Fall to Lowest Level in Twelve Years

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Residential real estate prices in Ireland continue to drop, and there appears to be no end in sight regarding their decline. The most recent data indicates that prices have fallen by as much as sixty-five percent in some cities of Ireland over the past five years.

The Irish housing market experienced its peak in 2006. Since that year, housing prices have literally gone into a freefall with no signs of slowing down any time soon. Ireland experienced its largest recorded housing price drop in history in the last quarter, falling eight percent during that time period.

The overall health of the nation’s banks has played a significant role in the housing market’s performance. With many banks failing and others bailing surviving, there has been a severe decline in the amount of mortgage financing made available to the people of Ireland.

Analysts predict that 2012 will continue to be a difficult year for the Irish residential real estate market, as the banks are showing few signs of improvement. In addition, unemployment rates across the country are expected to worsen. The combination of high unemployment and limited mortgage loan funding will continue to be unrelenting on property prices.

Even with prices at unbelievably low levels, the lack of mortgage loan funding has led to a massive decline in property sales as well. To put the decline in perspective, only thirteen thousand mortgages were issued in the past year. When comparing that number to the two hundred thousand that were issued during Ireland’s peak real estate year in 2006, it is apparent that the market is, at best, on life support.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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