House price inflation is moderating and could stand between 3% and 6% by the end of next year, according to a new report from AIB.
The latest report from the AIB Economic Research Unit highlights the health of the Irish housing market, despite some fears to the contrary. The report says that housing demand remains well underpinned and supply is increasing.
According to the report, house price inflation is moderating as the balance between supply and demand adjusts. AIB predicts further price moderation ahead.
John Beggs, AIB chief economist, said that the bank does not expect a hard landing or crash in either property prices or in construction output. 'We also see the opportunity of a deceleration to moderate price gains over the medium term,' he added.
Beggs said that equilibrium in the housing market is getting closer as demand falls due to a reduction in affordability, while supply has increased in both the new and second hand markets.
Overall, he said that the market 'looks to be cooling towards the much sought after soft landing'.
