I don't think that series accurately reflects how things have moved here, and doesn't really have predictive value.
However, if I had to pick somewhere on that though I'd say denial/fear. There have been practically no repossessions yet, and people are still convinced that they'll be able to keep the property that they can't afford. They were protected by a technicality until now. The Freemen have their magic incantations. The "where's my NAMA" brigade have Pat Kenny to help them blame the banks. There is as yet no general acceptance that people will have to give back what they can't afford.
At the same time, there's some who have jumped straight to "hope" that it's all over and "normal" market bouyancy is returning. I'd argue that they're actually in denial though.
I'd argue that when people bought these houses during the boom, their society told them something, even promised them something, so that they would buy. - Essentially, that they were doing the financially responsible, grown-up thing, that they could not lose, that they were partaking in the great Irish dream, so to speak. Politically, everything that has happened since the market collapsed, has been done to try and repair that broken promise.
The 'moral right' that our political, financial, institutional and media establishment feels it has, in its efforts to make good on that promise has been barely shaken. With the courage of their convictions, they will continue to try and drive property prices upwwards, drawing on every device available to them. They will do everything i their power to avoid anything happening that will make the suckers they need to sell to today and tomorrow doubt further the great Irish property dream that is the basis of their insidious proposition.
In that context, I choose 'hope' - hope that the political establishment will find a way to re-deliver on the promise that if you buy a house, if you play your small part in the rentier capitalism that forms the very foundation of this state - if you give your tacit consent to allowing a paradigm where some parts of our society are allowed to garner significant amount of profit without worthwhile contribution to our society - in return you are promised a small section of that pie eventually. This forms the fundamental social contract in our country.
I see out there 'hope' that they will have their pie again, through a combination of property prices 'recovering' eventually to near 2007 values, together with debt forbearance and/or forgiveness arrangements (eg. likely to be a 'split' mortgage, where you pay a mortgage based on today's market value, and you pay the rest of your mortgage at such time as your house value has recovered to a level above the value of the 'full' mortgage... This is the understanding I see out there - people know that they will not be made pay the 'parked' part of their mortgage unless there has been a full 'recovery' and even then, sure they might get away with not paying it, after enoough time has passed.)
There is 'hope' that the Irish mentality around property will prevail, unchallenged, again. - That politics in league with industry will succeed in a strategy of driving prices higher. That hope is becoming stronger and stronger.
Although in my view, that chart is a load of bollox in the context of the Irish psyche, and in the context of the reality that market cycle plays second fiddle to political-industrial process in this country. There is only 'hope' in the political-industrial process as it pertains to the Irish property market, and what we are talking about is the character of that hope - whether it is characterised
by fear, or confidence, or denial, or optimism etc. That characterisation is more a function of the politics rather than the market.
I'd say the 'hope' in the political-industrial process is becoming stronger and more 'optimistic'. The political-industrial process is clearly over the worst, and is prevailing in every kind of manner.
EDIT Link: Insight into the evolution of the real estate business in Ireland...