Despite a recent rise in property prices in Dublin, national house prices are expected to fall this year, according to a report yesterday. The latest Merrion Economics Irish Quarterly Economic Outlook projects a drop of 13.5 per cent in 2012 national house prices compared to a fall of almost 13 per cent in 2011.
It does not anticipate “any significant improvement in the overall country-wide housing market until the jobs situation gets better, and we see a return to some sort of ‘normal’ credit lending from the banks”.
It said the global backdrop remained very challenging for the Irish economy, with export markets in the euro zone and UK weak. It is forecasting Ireland’s economic recovery to remain subdued in 2012, with real GDP growth less than 1 per cent.
However, the export sector would be the key driver of Ireland’s economic recovery in the short-term, according to Merrion economist Alan McQuaid.
“Despite the slowdown in the global economy it is clear that Ireland has a very healthy and dynamic export model, helped by its focus on recession-proof goods.”