Latest 'property bubble' is an opportunity in disguise
Prudent planning will make the most of the housing shortage – which is what this is, writes Marc Coleman
Published 03/11/2013 | 02:00
One of the most hilarious images in the history of cartoons is the one of a terrified elephant standing on a three-legged stool in a kitchen and shrieking while pointing at a mouse.
Last week, a proverbial mouse did run out from under the skirting board. Predictably, news that house prices rose in Dublin by 3.9 per cent during September got a few elephants shrieking and jumping up on three-legged stools. At 12.2 per cent annually, house prices in the capital are growing at their fastest rate since the boom.
But that doesn't change the fact that they are still 50 per cent below peak levels. And as this column has always argued, just as those insane highs reflected a credit glut, the dysfunctional lows of recent years reflect an equally abnormal credit famine.