As you can see from the report below, prices are already close to 50% below where they were 4 years ago, and yet, Irish people are still obsessed with owning property. This means we are far from hitting the bottom.
I have stated many times that prices should reach drop by above 90% to have finally, durably, bottomed. And I'm now finally finding echoes of that on major publications — I admit, I would find an 85% decline to be acceptable as well :-)
Nov. 30 (Bloomberg) -- Irish homes may sell for as little as 21,000 euros ($28,000) today as owners dispose of foreclosed properties in the country’s biggest residential auction.
“The Allsop auctions are really the only mechanism we have now for the revelation of prices, because transactions outside of them are so thin on the ground,” said Constantin Gurdgiev, a lecturer in finance at Trinity College Dublin. [...]
“Contrary to what people want to think, Irish people are still obsessed with owning property.”
The average asking price for a home in Ireland was 195,000 euros in the third quarter, compared with 366,000 euros during the height of the property boom in mid-2007, according to Daft.ie, Ireland’s largest property website.
The central bank estimated in March that prices may fall as much as 60 percent from their peak. While properties in the city of Dublin may regain close to half their highest values, homes built in commuter towns in Ireland’s midlands may fall as much as 90 percent, Gurdgiev said.[...]