Economist predicts halt in house price increases
The Ulster Bank has predicted that new house prices will remain static throughout 2003, while inflation in other areas is likely to be 4%.
Pat McArdle, the bank's chief economist, said the supply of houses is expected to exceed demand by 10,000 this year, forcing zero inflation in the sector.
Mr McArdle also said that rents have actually begun to fall in recent months, a sign that the backlog of demand for houses has been removed.
"While the existing price momentum may continue for a while and there may be difference between the experience in Dublin and the rest of the country, our central forecast is for zero new house price inflation this year," he said.
