Economists warn of house price chaos

UNLESS house price inflation slows to between 5% and 7%, there is a serious risk of house prices falling suddenly, Goodbody Stockbrokers believe.

Goodbody economists Colin Hunt and Dermot O’Leary in Goodbody’s Autumn Review 2003 state: “A continuing failure on the part of the housing market to become attuned to a changed demand fundamentally increases the risks of a disorderly correction and outright price falls.”

The Goodbody duo said that the housing market continues to cause them concern on the back of its failure to adjust to significant changes in the Irish economy’s growth momentum over the past two years.