House price increases will ease to 6 per cent next year according to the latest Bank of Ireland quarterly Irish Property Review.
The review finds that the average price of a house is now €267,000. This is the result of an 11 per cent rise in prices in the year to date, with a further 1 per cent rise anticipated before year end.
It also notes that homes in the greater Dublin region are 37 per cent more expensive. The review notes that prices for second-hand homes are rising more quickly than new homes.
Author of the review, Bank of Ireland chief economist Mr Dan McLaughlin, said house prices increased ahead of expectations this year.
But Mr McLaughlin said the 65,000 new homes due to be completed this year will go a large way to meet demand. However, he added that this added supply is unlikely to lead to a fall in prices
"We continue to expect a move to equilibrium in the housing market, implying a deceleration in house price inflation over the next 12 to 18 months.
"However, we doubt that this will be the catalyst for a fall in house prices as periods of relative weakness in housing usually give rise to a fall in transactions rather than prices," he said.