IMF warns of cooling Irish property market

The International Monetary Fund (IMF) has warned of a potential cooling in Ireland's booming property market.

The International Monetary Fund (IMF) has warned of a potential cooling in Ireland's booming property market.

In its World Economic Outlook report, the IMF cited overvalued property markets as a key risk factor facing the world economy, naming Ireland, the United States, Britain, and Spain in particular.

"A key risk on the demand side is that the continued cooling of advanced-economy housing markets will weaken household balance sheets and undercut aggregate demand," it said in the report.

"At this point, concerns centre on the United States, although other markets, such as those in Ireland, Spain, and the United Kingdom, also still seem overvalued by most conventional measures."

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The IMF report warns that a sharp adjustment could be on the cards for the housing markets, which could impair economies.

The warning is not news to the Irish property market; the Central Bank has been warning of a slowdown for some time.