Foundations of housing recovery are still shaky

The Irish housing market has shown clear signs of recovery over the past year. The pick-up in the domestic economy, including the improvement in the labour market has helped to provide a supportive environment.

In terms of house building, various indicators display an upturn in activity levels, albeit from a very low base. The most recent housing completions data showed a 35% rise in the year to October.

Completions are on course to come in around 11,000 units for the full year. This would represent their best year since 2011, although in absolute terms, it is still a very low figure.