Irish property market facing slowdown

The Irish property market could be facing a sharp slowdown in the coming months.

The warning comes from the ESRI which says house prices here could be overvalued by at least 7%.

The shortage of housing supply and household savings for home buyers built up during the covid pandemic has pushed prices upwards.

However Dr Conor O’Toole, a senior research officer at the ESRI, says although overvalued, it’s too early to say if house prices will fall.

“In a sense, what the findings are pointing out that some of the highly accelerated growth that we’ve seen over the last number of quarters is likely to continue to come down.

“It’s a little bit early to be talking about the level of house prices actually falling, but its undoubted that the growth rate is going to come down.”