Sherry Fitzgerald says the pace of house price inflation was more robust than anticipated in the first four months of 2004, with the average price of a second hand property in Ireland rising by over 11%.
This was mainly due to the limited supply of second hand properties, Sherry Fitzgerald's chief economist Marian Finnegan told a housing conference today.
However, Ms Finnegan pointed out to delegates that the overall trend reflects a notable moderation in price growth from almost 20% in the 12 months to the first quarter of 2003 to just over 11% in the last 12 months. This, she said, is a real indicator of the increased stability in the market.
She said that predictions on the demise of the property industry has been considerably overstated. 'Today the Irish property market is exhibiting all the positive attributes of increased stability - supply has increased, price inflation is moderating and rental levels are stabilising - all of which is positive news for the industry and indeed the economy,' she said.
However, despite this first time buyers trying to buy a home in Dublin are still facing the greatest difficulties. The latest available income and housing statistics reveal that a first time buyer couple taking out a 90% mortgage on an average new house in Dublin would spend about 40% of their net monthly income on financing their mortgage.
Ms Finnegan forecast a continuation of relatively strong demand for property up to the year 2016 with demand for about 670,000 housing units.
