House prices set to remain static

HOUSE prices will remain static for at least a year and the cost of some homes could actually fall, according to one of the country’s leading economists.

Dr Dan McLaughlin, chief economist with Bank of Ireland, said yesterday that, after another bumper year for building, the supply of new houses has finally begun to match demand.

That means the average cost of new houses will rise only marginally at best and is more likely not to show any increase at all. Some areas and categories of houses will see a downturn in prices. This will be particularly evident at the top end of the market in Dublin.