The Unassuming Economist

IMF’s new report on Ireland says that: “Strong momentum in the housing market requires close monitoring. Recent policy actions to address homelessness, improve housing affordability and the recalibration of macroprudential measures may have added impetus to the market, which also has seen an increase in price expectations and a surge in mortgage approvals. This suggests that strong demand is likely to be sustained in the period ahead, particularly given the positive momentum in the labor market and improved household balance sheets. Staff analysis—though subject to uncertainty—finds no clear evidence of a significant price misalignment in the residential property market (…), yet persistent pressures could lead to imbalances, particularly given the lagged supply response.”