Jim Power: Rate cuts may add further fuel to housing fire
National average prices are 10.8% above the peak of the property boom in April 2007, Dublin prices are just 0.7% lower than their unsustainable February 2007 peak.
Housing has always been a national obsession in this country and garners saturated coverage regardless of what direction prices are moving. The latest house price data from the CSO relating to June confirm the upward trend that has become established over the past couple of years.
The data does not make for pleasant reading as rapidly escalating house prices cannot be regarded as an economic or social good as they just soak resources out of the real economy and soak spending power from house buyers. In addition, escalating house prices also drive rental costs.
