The Unassuming Economist

“Property values are up sharply, though valuation risks are not yet evident, and mortgage lending is beginning to rise from a low base. National housing prices rose 16.3 percent y/y in October, with Dublin prices surging 24.2 percent y/y, though they remain 38 percent below their pre crisis peak. New mortgage loans grew about 50 percent y/y in Q3 2014, from a low base, with about half of all residential property transactions in cash. Residential rents are also rising, and house price ratios to rents and incomes do not yet signal valuation concerns. Commercial real estate (CRE) values climbed 27 percent y/y in September. With commercial rents rising 18 percent y/y, rental yields of around 7 percent do not signal overvaluation,” according to the latest IMF report on Ireland.