Friday, May 2, 2008
The bubble is over in Ulster
Since 1983, house prices in Northern Ireland have increased 8-fold. Either they were giving houses away for free back in 1980s, or the province has just experienced one of the most appalling housing bubbles in history.
Notwithstanding the peace dividend, my money is on the bubble. Low interest rates, smooth taking estate agents, and foolish banks; the three vital ingredients for a speculative mania were all present in Ireland over the last ten or so years.
Well, it is all over now. Prices peaked last summer. Since then, prices have fallen by about 6 percent.