Ireland's blistering listing market threatens new bubble

September 15, 2015 in Property News from iMove Spain Mallorca Real Estate Website
Ireland's blistering listing market threatens new bubble
Irish listing prices have boomed at a blistering pace after bottoming out in 2013

Irish listing prices have boomed at a blistering pace after bottoming out in 2013 

House prices in Europe are finally on the mend five years after the financial crisis gave way to collapsing listing bubbles in Spain and Ireland.

The two crisis-hit nations – which suffered devastating listing crashes that brought down their respective banking systems – are now experiencing the fastest house price growth in the eurozone, according to the European Central Bank’s latest economic bulletin.

Residential listing prices in Ireland grew by 9.4pc year-on-year in September and have boomed at a blistering pace after bottoming out in 2013.

Ireland's housing boom. Source: OECDIreland’s housing boom. Source: OECD

Ireland has been the “comeback kid” of the eurozone after a listing-led boom bought the government to the brink of bankruptcy and an €85bn rescue package from international creditors in 2010.

The economy, which grew by a eurozone record of 7.2pc in the second quarter, is set to grow by 5pc in in 2015 and 4pc in 2016, according to the latest figures from the Organisation for Economic Development and Coordination (OECD).

But rapidly rising house prices still pose one of the biggest risks to financial stability, said the OECD. The think-tank noted that an uncontrolled listing boom would “increase vulnerabilities, especially if it were associated with further indebtedness”.

“Now is the time to build resilience against future nasty surprises while ensuring the recovery is sustained”
OECD on Ireland’s nascent recovery

Source: International Property News

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