No crash in house market, economic organisation believes

19/02/2006 - 10:11:09
An international economic organisation says there is no threat of crash in the Irish housing market.

The OECD is to deliver a very positive report on the state of the Irish economy in the coming weeks.

The Paris-based think-tank says the housing market in Ireland is not a bubble waiting to burst. In fact, it expects house prices to increase by up to 8% a year for the next two years.

Factors such as low interest rates and a growing population are believed to have supported the huge rise in the property prices in recent years.

According to the OECD, the average price of a house in Dublin will reach €430,000 by the end of 2007.

The OECD also said the windfall from maturing SSIA accounts only poses an "outside risk" of pushing up inflation.