Is Ireland’s Housing Market in a Bubble? Separating Facts from Fear
Prices rising by 7%, some agents saying prices are up as much as 15% Is it a bubble, and will it burst any time soon? There is much hype about the Irish housing bubble, but is it a bubble, or are the fears unfounded? Let’s explore this together in this video. But before I do, Question time, do you think we are in a bubble and will it burst, let me know in the comments. A better question might be are house prices undervalued.
Moving on, “First, let’s understand what a housing bubble actually is. A housing bubble occurs when the prices of homes rise rapidly to levels that are unsustainable, driven by high demand, speculation, and exuberant spending. Eventually, these inflated prices reach a peak, and when demand can no longer support the high prices, the bubble bursts, leading to a sharp decline in home values.”
Bubbles are common enough, Tulipmania’ as it is known today is generally viewed as being the first example of an economic, or financial bubble. When prices of tulip went out of control in the 1600. There more recent bubbles from tech, altcoins, and housing can also have bubbles.
History provides us with clear examples of housing bubbles. In the late 1980s, Japan experienced a massive property bubble, with real estate prices skyrocketing due to speculative buying and loose credit policies. When the bubble burst, it led to a prolonged economic stagnation known as the ‘Lost Decade.’
In the early 2000s, the United States saw a housing bubble driven by subprime mortgage lending. This bubble burst in 2007-2008, triggering the global financial crisis.
Spain also faced a similar scenario in the mid-2000s, where rapid housing price increases were fueled by cheap credit and high demand. The burst of this bubble resulted in a severe economic downturn.”
My name is Shane Fleming a chartered property expert with over 18 years of experience in real estate, a degree in property economics. The views in these videos are my own and are just entertainment.
Credit to : Shane Fleming