House Completion Decline Could Avoid Prolonged Recession

Only 4,050 houses were completed in Ireland in March, according to the Irish Independent.

The paper has obtained figures - based on the number of new ESB connections - that show a 43% fall in house completions on the same period last year.

This is the latest in a string of reports that reveal house building is declining at a much faster rate than previously anticipated, causing many more economists to revise down their growth predictions.


However, Davy Stockbrokers Economist, Rossa White took a more positive view of the falling number of house completions. He said: "Crucially, builders reacted swiftly to slackening demand in the housing market in late summer 2006 and have been cutting supply aggressively ever since.

"That may help avoid a more prolonged housing market recession. But it is important that the unsold stock is cleared. We estimate that there is at least 10 months worth of unsold new homes on the Dublin market."

(VB/JM)