A new report from the Central Bank says house prices will fall this year, but will have increased modestly by the end of 2015.
Prices have already been in freefall for six years. The Central Bank cares about house prices because they see falling values as one reason for the rise in mortgage arrears. Now, for the first time, the bank has surveyed 200 economists, surveyors, stock brokers and estate agents for their view on the property market. Even the estate agents say prices have further to fall nationally this year. The survey gives no breakdown by region, so it is not clear whether the experts think the Dublin region will escape the latest drops. The main reasons experts gave for further price falls are difficulty getting mortgages, the potential impact of any increase in repossessions, the scrapping of the mortgage interest relief tax break and the introduction o the property tax.
By 2015 however, a majority of those surveyed think prices will have increased – though one in six think that is too optimistic and many think prices will not have changed from the end of last year.
Sounds like a good reason to keep renting your Investments!