House buyers beware: prices set to rise 12%

HOUSEHUNTERS were hit with more bad news yesterday as estate agents Sherry FitzGerald predicted prices would rise by up to 12% this year, on top of last year's gains of 11%.

Despite this, chief economist with Sherry FitzGerald Marian Finnegan said yesterday houses were as affordable now as they were in 2000 and negative comments on the housing market had been overstated.

Ms Finnegan said the market had become more stable and year-on-year price hikes of 20% were now a thing of the past.