Wednesday 21 February 2018

Dermot O'Leary: Don't bet your house on rapid price rises slowing down any time soon

Couple with realtor looking at new home
Couple with realtor looking at new home

Dermot O'Leary

After the rapid house price growth in the lead-up to the 2007 peak and the sharp falls of recent years, one would be forgiven for preferring a period of rather boring movement in house prices, preferably in the range of 3pc to 5pc on an annual basis.

Such a rate of growth would be in line with the likely growth in incomes, and thus the market could be described as being in the midst of a sustainable recovery.

Most markets don't behave in this way. Ireland's property markets are especially prone to boom/bust episodes, both in the commercial and residential markets, although some comfort can be taken from the fact that these cycles are a recurring feature of almost all economies across history. In many of these cases, policymakers do learn from past mistakes, and take measures to avoid them being repeated.

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