The Irish Home Builders Association says current trends indicate that only around 37,000 new homes will be built next year, down from 45,000 this year.
In a report, it says the medium-term demand for housing is 60,000 a year.
IHBA director Hubert Fitzpatrick said, however, that his group expected higher levels of house building activity next year, though this may feed through to housing output figures only in 2010.
The IHBA said the main sources of uncertainty in the housing market - stamp duty and mortgage interest relief - had been address, while fears of more interest rate rises had been dispelled.
The IHBA today launched a new website - www.homefacts.ie - aimed at guiding people through the process of buying a home. It has also announced a code of practice for its members which covers the setting up and operation of housing and apartment management companies. It says the code is binding on all members.
