GOOD NEWS FOR PURCHASERS

EXTRACT FROM Irish Independent 24^th Jauary 2012

Demographia Reports House prices now affordable

HOUSE prices have fallen so much they have now reached affordable levels for thousands on average salaries, a major new study claims.

The first of its kind, the global survey found it now takes the equivalent of little more than three times the average salary to buy a house here.

That compares with 10 times the average salary of €36,000 a year during the boom. The price plunge puts houses within reach of teachers, nurses, gardai and office workers for the first time in years.

The study is part of a major international examination of prices in cities across the globe. It was carried out by the prestigious Demographia International Housing Affordability Survey.

Its experts looked at 325 cities in English-speaking countries such as Australia, New Zealand, the UK, the United States, Canada, Hong Kong and Ireland….

Wendell Cox, principal of the Illinois-based Demographia said: “The bubble is over. Prices have continued to decline. We have housing prices back to where they’re supposed to be.”…..

….Assuming an average price of €150,000 and a saved deposit of 20pc (€30,000) a prospective buyer would have to borrow €120,000 which is a little more than three times the average earnings…..

…..The findings may put more pressure on banks to acknowledge