Growth in house prices ‘will taper off’

THE housing market will slow down eventually, but there will be no collapse in prices, according to a leading economist.

Ulster Bank chief economist Pat McArdle said predictions of a slowdown last year had turned out to be incorrect and early indications in 2004 suggest house prices would continue to grow.

Leading international magazine The Economist was singled out as the "worst offender" for saying as recently as last week that Irish house prices remained substantially overvalued. Mr McArdle said the magazine's analysis failed to take account of higher disposable incomes in Ireland.