A survey carried out by the Economist magazine is predicting a collapse in property prices in Ireland and worldwide. The magazine, which will be on shop shelves tomorrow, said that in many countries the stockmarket bubble has been replaced by a property-price bubble and sooner or later that bubble is going to burst.
The Economist studied data going back to 1975 from estate agents, lending institutions and government agencies and found that the price of homes in six big developed countries, including the US will drop dramatically in the near future.
It also said the consequences will be far more serious and painful than the current plunge in the stockmarket.
The survey authors advise anyone who needs to move for work or family reasons to consider selling and then renting until prices drop. However they say most people will have to stick it out and watch their wealth dwindle.
