House price growth ‘poses threat’

HOUSE prices could crash unless the double digit growth of past years slows dramatically.

So far the housing market has failed to take into account the sharp slowdown in the economy while growth of double digit proportions is still being fuelled by speculative investment, according to a new review.

“The risks of a disorderly correction will increase markedly in 2004 if house price inflation fails to moderate from its current double digit clip,” Colin Hunt, chief economist, Goodbody Stockbrokers has warned.