If you thought our prediction that house prices would fall 30% from their peak was bad, get a load of this... Irish economics professor Morgan Kelly told a conference that he expects house prices in Ireland may fall 80% from their peak, and that Ireland will see more demolition than construction of houses over the next decade, the Irish Times reported. "In a presentation that drew several collective intakes of breath, Mr Kelly predicted that house prices would fall by 80% from peak to trough in real terms," the article said. "Construction, but not demolition, of residential and commercial property will fall to zero for the foreseeable future," Kelly said. In his presentation to the conference held by the University College of Dublin, Kelly said that it could take Ireland 10 years to recover from the current financial crisis.
"It has taken us 10 years to get into this situation "“ it will in all likelihood take us 10 years to get out of it." Interest.co.nz has contacted Kelly for a copy of the presentation.
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