MCWILLIAMS PREDICTS NEW PROPERTY CRASH
Economist claims house prices point to danger
FINANCE expert David Mcwilliams has predicted Ireland is set for a second property crash – just nine years after the last one.
The economy is growing steadily in Dublin and the big cities, with unemployment falling to 6.1% nationwide and estimated to drop to just 5.7% next year.
That is from a peak of over 15% after the 2008 crash.
However, Mcwilliams – who forecast the last crash a decade before it occurred – believes he has seen worrying signs history is to be repeated.
He said: “I believe there is a bubble and it is building very rapidly. The interesting thing is you don’t need credit to have a bubble. “A three-bed semi in Dublin, the sort of house I was brought up in. When a house like that costs €450,000, which is 10 times the average wage, you know you’re in very dangerous territory.” The author and broadcaster states “the property market will burst again” in a new TV3 series, David Mcwilliams’ Ireland, which airs tonight at 10pm.
It will explore the big issues facing society and the economy with renters, developers, economists and comedians thrashing out the big issues.
In episode one, Mcwilliams looks at why house prices are so high and asks who benefits from a housing crisis. The economist has frequently claimed the 2008 crash was predictable and preventable and he believes a second is also entirely avoidable.
He said: “I saw this earlier than anybody else and spent the best part of a decade trying to warn as many people as possible.” During the show, Mcwilliams will also ask if a “Ryanair for construction” is needed to bring costs down.
Weekly skits from Oliver Callan, Andrew Maxwell and Eric Lalor provide some lighter moments.
6.1% Current unemployment statistics – down from 15% after 2008 crash