Limerick house prices “remain more affordable than many other areas of the country and this should prevent any major deterioration in the local market” in 2008, according to the manager of IIB Homeloans in the mid-west, while speaking at a recent conference for leading Limerick mortgage brokers.

Asta Cibulskyte pictured with Austin Hughes (Chief Economist IIB Bank) and Pat Naughton at the recent IIB Homeloans Housing Market Outlook 2008 Seminar.

Pat Naughton, Manager of IIB Homeloans in the mid-west, said that “while increased supply may put downward pressure on prices in the near term, a more favourable trend should become evident later in 2008”.

Austin Hughes, Chief Economist with IIB Bank presented a comprehensive paper entitled ‘Housing Market Outlook: New Year; Old Problems?’ and his findings indicated that the Irish housing market faces a tough start.

Mr Hughes said that the market should see a steadier finish to 2008 as lower borrowing costs and reduced supply help return the market to balance.

His findings suggested that consumer confidence remains very fragile and while a sharp turnaround is unlikely, a lot of bad news is now “priced in” to Irish property values and less threatening news could make a change.

Mr Hughes also said that “turmoil in financial markets and nervousness about the Irish economic outlook mean Irish house prices could slip further in coming months” and “signs of weaker growth in Europe will force the ECB to cut interest rates”.

Other research results said that around 75% of Irish consumers expect borrowing costs to rise in 2008 and so expect house prices to fall around 5% in 2008 and to remain fairly flat for the next five years.

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