The threat of a trade war will influence how the housing market will perform this year, according to a new report by property website MyHome.ie, in association with Bank of Ireland.
The report says the Irish property market has a "disproportionate reliance" on high income earners working in multinational sector, which leaves it vulnerable to any sudden shock.
It found that asking prices for property rose by 8% over the year.
The average mortgage loan for a house purchase is now almost €320,000, up 7% on the year, according to the report.
It added in the absence of the impact of a trade war, the housing market's record low supply levels and continued strong demand meant that MyHome's forecast for 5% inflation this year might be "too conservative".
Bank of Ireland chief economist Conall MacCoille, who authored the report, warned of increasingly stretched affordability in the market.
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"Through 2024 Ireland's residential property price index rose by 8.7%, stretching affordability versus the 5.6% pay growth recorded over the same period," he said.
"The average Irish residential property transaction of €404,000 was an eight-times multiple of average annual earnings of €51,000," he stated.
"This is the most stretched Irish house prices have become relative to income since 2009," he added.
