[/font][font=Verdana, Arial, Helvetica, sans-serif]A Central Bank report has warned about high debt levels, but it is now less worried about the possibility of a sharp fall in house prices.
ClubMan said:RTÉ News today:
Central Bank report has warned about high debt levels, but it is now less worried about the possibility of a sharp fall in house prices.
The Irish Times reports that senior officials from the OECD and the Central Bank recently accepted that the Irish property market is overvalued by 15 per cent, according to a confidential account of their meeting produced by the Paris-based body.
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While not disagreeing with the figure presented, the Central Bank officials indicated their nervousness about presenting such figures in public. The OECD records them as stating: "They suggested that any numerical estimate of overvaluation should be presented only with extreme caution to avoid destabilising the market."
Duplex said:The US market seems to be tanking under the pressure of over speculation and rising rates and in Auckland New Zealand the bottom has fallen out of the apartment market. Could Dublin suffer the same fate?
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Mr Quirk reckons Dr Bollard "stepped it up a notch" this week when he issued a fresh stern warning about consumer spending and the runaway housing market.
Dr Bollard told banks, homeowners and international investors they could be in for a sharp shock if New Zealanders are allowed to continue their current borrowing and spending.
He said he was willing to "take further action" on top of the eight interest rate hikes since the start of last year. Dr Bollard will almost certainly raise the official cash rate to 7.25 per cent from 7.0 per cent at the bank's next review on December 8 as he tries to tame the 3.4 per cent annual inflation rate.
Dr Bollard repeated his concerns that homeowners were continuing to spend more than they earn and many were "vulnerable" to interest rate rises, a fall in property prices, or their job prospects worsening.
New Zealanders' love affair with home ownership and borrowing money on their sole financial asset was a recipe for disaster, he said.
....experiencing anything like the net immigration that Dublin is
What has that got to do with anything - in particular house prices!? Since he is from an EU state he is entitled to seek any job that he wants here in Ireland or anywhere else in the EU - including working as a physicist. However if such a job does not exist then we can't create one out of thin air for him or if he decides that he wants to work on the sites then that's up to him. I don't think that this individual experience says anything about "the Ireland of today" or relates to house prices in any way.CoffeeBrew said:I was reading about an immigrant yesterday & I though it just about sums up the Ireland of today and where we might be heading.
The SBPost told the story of a talented Polish Physicist who came to Ireland. His specialty I think was the physics of metals.
Now, is he researching metals and materials that might one day contribute to Irelands competitiveness on the international scene ?
Guess again ! He works carrying cement bags in support of a construction site.
Sherpa said:I was just trying to make the point that what happens in NZ has no more or no less relevance to the Irish property market than what happens in Tibet.
Duplex said:You see no parallels between Ireland and New Zealand Sherpa? I wonder if there is any nation in a analogous position to Ireland, past or present, not willing or able to control crippling debt growth and falling competitiveness.
Duplex said:Your mocking reference to Tibet might be apposite, but I’m pretty sure they have control of their economy.
However the Minister for Business and Economic Affairs, Bendt Bendtsen, says there will be no helping hand offered to house owners if they do find themselves in trouble when prices drop.
“People must get used to the idea that house prices are going to be significantly lower in the coming years than they have been,” he said, adding that the Danish economy is in good shape and that most families will be able to withstand interest rate increases and a period of lower housing prices.
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