Bubble? What Bubble?

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Gene Kerrigan tweetz:

It’s comforting to have the ESRI experts assure us there’s no housing bubble.
Here’s some more experts…

Related: ESRI says rapid rise in house prices does not signal new bubble (The Irish Times)

20 thoughts on “Bubble? What Bubble?

  1. Hello you!

    It’s funny looking back at all that old footage. We’ve come a long way since, and learned so much…

  2. Andrew

    It really beggars belief that this country is going down this road again. Fine Gael had an opportunity to actually do something about our housing market. They held all the cards and chose to restrict supply. Rising prices, in housing at least, is seen as good thing to the FG/FF mind-set. Of course a large proportion of the home owning public feel the same.
    Unfortunately this cost of housing sucks money out of the real economy.
    It will lead to ruin again.
    I have to wonder though, is it the politicians who actually make these policy decisions or is it the senior mandarins in the various departments? The Sir Humphreys of this world.

  3. Daisy Chainsaw

    In almost 30 years of listening to ESRI bullplop, I’ve yet to hear them get something right.

  4. Donal

    Regardless of past issues in this case I think it is quite clear, there is not a bubble.
    The price being paid for the relatively small number of houses available to buy is increasing as there is huge demand, but increased prices on their own does not equal a bubble.
    It is not just the ESRI saying this.

    1. Andrew

      The government have already undermined the Central Bank’s lending rules on this and just wait and they’ll do it again. banks will be encouraged to lend more. You can already hear the cries from the public saying the rules are too punitive. they actually want to borrow more!

      1. Donal

        A credit fuelled bubble requires sh*tloads of credit, and a huge amount of sales transactions.
        Neither of these is in evidence.
        Yes, plenty of people have mortgage approval, but many of these are struggling to find a place to buy. How can this be a bubble?
        There are sfa new houses being built, there are sfa second hand houses coming on the market (as a large number of people cannot afford to move due to neg equity etc).
        There is a housing crisis, and gov policy is doing nothing to help fix it, and as a result the price paid for the limited number of houses available is increasing.
        But this is nothing like the frenzy of 10-15 years ago when prices increased and increased because 100% mortgages and low interest rates allowed easy access to the market, and builders were building like mad.

        1. Andy

          There’s not that many in negative equity. Prices have recovered significantly since the bust and they’ve have 10 years or mortgage repayments on top of that to reduce their principal balance.

          It is clearly not a credit fueled bubble. But are people getting value for money? That’s questionable.

    1. Cian

      A lot of people have killed themselves since 2007 because of the whole housing mess that he oversaw.

  5. Panty Christ

    I don’t know how people who talk down the economy don’t, you know, go kill themselves.

    1. bisted

      …I’m waiting to hear what the big ballsy guys are doing…what do you mean they’re all broke…how come they’re still on TV/Radio…

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