Irish house price collapse the world’s worst
Published 26/08/2011 | 12:54
IRELAND had the biggest house price collapse among all reporting countries in the Global Property Guide survey over the past year.
House prices were down by nearly 15pc, an even worse decline than the 12pcl fall the previous year.
The only European countries which experienced weaker performances than the previous year include Netherlands (-4.07pc), Slovak Republic (-6.49pc), Croatia (-6.55pc), Spain (-8.43pc) and Athens, Greece (-9.88pc).
In Britain, average house prices were down by 5.33pc year-on-year, after rising 6.04pc the previous year.
US house prices fell 9.05pc after inflation in the second quarter from a year earlier, the largest decline since 2009, according to the Federal Finance Housing Agency (FHFA).
During the quarter, house prices dropped 2.33pc after inflation (a fall of 0.63pc in nominal terms).
“House prices are still over-stretched in many countries, and developed world economies are still weak, so price-falls were to be expected,” said Matthew Montagu-Pollock, publisher of the Global Property Guide.
“Low interest rates will be positive for housing, but only if the underlying economies recover.
“And recovery will ultimately bring a sting in the tail, because higher inflation would eventually bring higher nominal interest rates, choking strong upward house price movements.”