House prices....again....

I stumbled across this blog post today that seems to make a lot of sense about the crazy nature of the Irish housing market, and the fact that people still aren't understanding that prices must continue to fall. The bubble was mere speculation, and it has gone.

It makes a lot of sense, and using his estimate that house value should be 12 to 14 times annual rent, then the place we rent should cost about €160,000. But, an identical house is currently on the market (and has been for 8 months) at €440,000. Ridiculous, and another reason why we'll keep renting for now.