ESRI: ‘House prices are above where we would predict them to be’ - News Summed Up

ESRI: ‘House prices are above where we would predict them to be’


ESRI still expects house prices to rise in the coming months as support factors such as population growth and sluggish supply persist, but said the rate of growth would be significantly slower. Photograph: Aidan Crawley/BloombergThe Economic and Social Research Institute (ESRI) is predicting a significant slowdown in house price growth as interest rates start to rise in response to higher inflation. In its latest economic commentary, the ESRI modelled the impact of these higher interest rates on house prices here, noting that interest rates were “regarded as being an important determinant of the demand for housing”. The ESRI said it still expected house prices to rise in the coming months as support factors such as population growth and sluggish supply persist, but said the rate of growth would be significantly slower. “House prices are above where we would predict them to be and that by definition is what we would call an overvaluation,” he said.


Source: The Irish Times June 23, 2022 19:33 UTC



Loading...
Loading...
  

Loading...