Expectations for price growth in the Irish housing market fell notably in the second quarter, according to a new survey published by the Central Bank yesterday.

Respondents to the survey expect price growth of 5% over the next twelve months, down from 8% in the last survey (fourth quarter 2017). 

The fall in price growth expectations was particularly marked in Dublin, where the one-year expectation fell to just 2%, down from 8% in the fourth quarter 2017. Moreover, just 55% of the respondents expect price growth over the coming twelve months, down from 98% in the fourth quarter 2017. 
 
A lack of supply was cited as the main influencer of house price developments, the most important driver this quarter was “bank credit”.
 
The fall in price expectations is mirrored in the latest trends in asking prices from the property websites daft.ie and myhome.ie. The latest official price index puts annual inflation at 12%, down modestly from a recent peak of over 13%.
 
According to Goodbody Stockbrokers, "The latest official price index puts annual inflation at 12%, down modestly from a recent peak of over 13%. However, we are likely to see a further slowdown in the second half of the year based on both the tough comparatives and the signs that tighter credit is impacting on demand. Our forecasts suggest an end-year growth rate of 9%, slowing further to 6% in 2019."

Source: www.businessworld.ie