Madam, – There has been much healthy debate on Nama and developing a framework for assessing the value of both the “toxic loans” and the properties on which those loans are collateralised. Surely one of the keys to unlocking this riddle is the establishment of a process for full public disclosure of house price sales?
It is clear that towards the top of the bubble the “professional valuations” of prime Irish property were at the heart of a very dark and dangerous Ponzi scheme for which the taxpayer is now paying. We in Ireland have a strong culture of home ownership compared with many of our EU neighbours to whom renting is the norm.
As a result we tend to have more of our personal worth tied up in property than other countries where it is normal to have a more balanced approach to investment planning. The construction industry has traditionally been a significant employer and we have seen several firms collapse because those at the helm got sucked into believing that Irish house prices could indefinitely defy gravity and elementary economic theory, and failed to plan for any other contingency.
In light of this, house prices, and house price activity are a significant variable in the overall economic picture.
Markets where information is widely available tend to function more efficiently than markets where information is held by a small group. In addition, markets where a small group of individuals with vested interests have a monopoly of information are more prone to manipulation and deceit.
Full public disclosure on all house sale prices would be a major boon to economic forecasting. As we look to restore faith in our economy and in the integrity of our public institutions, it would be nice to think we could expect realistic valuations and straight-talking market information from our estate agents and auctioneers. – Yours, etc,