Kelly tells High Court Irish property prices are likely to fall back to mid-1990s levels
Sep 3rd, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
UCD economist Morgan Kelly, who has done extensive work on contagion from economic bubbles, told the High Court hearing on the Carroll examinership bid on Wednesday, that Irish property prices are likely to fall back to mid-1990s levels, a view that is based on research on some 40 similar property booms. He said the current collapse of property sales, despite price falls of between 40-50 per cent, combined with large stocks of properties held by deeply indebted builders, developers and private investors, made it difficult to dismiss the possibility Irish property prices could remain below half their peak value “for the next decade or longer.”