The Irish housing market is two years into a sustainable recovery, according to a research report from Goodbody Stockbrokers.

New Central Bank mortgage restrictions will cause a moderation in mortgage lending, say Goodbody economists Dermot O'Leary and Juliet Tennent, but this will not occur until the second half of this year.

The report says houses are currently priced around their fair value but will continue to rise, moderately, over the next two years. 

It is predicting 7% growth in 2015 and 5% in 2016.

It may take until the end of the decade, Goodbody says, for supply of new homes to meet demand and for mortgage lending to rise from near 40 year lows to a normal level of lending.