Irish property market set to slow down with house prices overvalued by 7%, ESRI says

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Cost-of-living squeeze and higher interest rates likely to cool the market, says think tank, but too early to say if prices will fall

It found that prices were about 7 per cent above their expected trend values as of the end of last year. Unlike the pre-2008 period, when the overvaluation of property was driven by excess credit, this time around prices have been inflated by pandemic-related factors such as increased savings and curtailed supply combined with “the increasing share” of institutional investors in the market, it said.

The rate of house price growth in the State fell to 13 per cent in July, down from 14 per cent in June, extending a pattern of deceleration seen in recent months, according to the Central Statistics Office.

 

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Yip. Rents will increase and renters will chase everything that’s available to buy. Dead money no security and mortgages still less of an outlay.

When the market is contrived by the banks, government, media...It will eventually correct itself. Overvalued by 20-50%

If house prices devalue banks will stop lending for new builds. It would be foolish to lend for new builds in a falling market. Rental supply will not increase. Rents will not fall repeat not fall.

Shite..my house value only just recovered

They are over valued by 55%.

I think it's overvalued by about 25%. Rents are overcharged by about 40%. The housing racket of FFG is all very dodge.

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