A report on the housing market carried out by IIB Bank has found that one in nine adults are considering buying a property, with half of these expecting to buy in the next two years.
IIB describes these figures as 'remarkable', adding that the underlying demand for property may be stronger than previous studies have suggested. It has lifted its forecast for house price inflation this year to 7%, though it adds that demand is set to peak in 2005.
IIB says the interest rate climate will continue to support a strong housing market this year, with rates rising only by 0.75 points this year.
The report says the net worth - the increase in the value of housing minus new borrowing - of Irish homeowners increased by €30 billion in 2004, more than four times the increase in gross national product over the same period. IIB adds that this' 'wealth effect' from property is likely to be a critical influence on economic activity over the next three to five years.
