The future development of the Irish housing market will play a significant role in determining the pattern of the long-term recovery of the Irish economy. While the housing market may never return to where it was in the boom years, some recovery will eventually take place. The timing of this recovery, including the timing of the turnaround in house prices, will play a role in determining when output in the economy returns towards its long-term potential. Activity in the housing market is influenced by a range of factors including incomes, prices, price expectations, interest rates and affordability. It is not possible to forecast when a turning point will take place but this note considers evidence on some of the variables which might help bring about a stabilisation in the market.
From the ESRI’s ‘Special Report‘ co-written by the brother of a well known Irish estate agent.