Estate agents expect property prices to increase by an average of 2% over the next 12 months.
However according to the latest Society of Chartered Surveyors Ireland Monitor, 43% of agents believe prices will level off soon.
Six out of 10 agents believe current residential property prices are expensive, while three out of 10 say they are fair value.
When asked where they believe we are in the market cycle, 14% believe prices are falling but will level off shortly while 11% believe prices are starting to fall.
A further 14% believe prices have peaked and should start to decline.
Affordability scenarios compiled by the Society of Chartered Surveyors Ireland. Source: SCSISCSI Chair of Practice & Policy, John O’Sullivan, said the continuing shortage of supply and interest rate increases are behind the increase.
"We have supply issues, and for example if you at MyHome.ie, there's currently 14,000 properties listed nationally," he said.
"Pre-pandemic that would been 20,000 for this this time of the year.
"Supply is well down - supply is probably maintaining prices, and actually probably giving the little bit of growth on it, given what's happening in the wider economy".
Mr O’Sullivan said the modest increase expected in prices should be seen in a positive light.
"Our members would expect prices to increase by about 2% over the next 12 months, but I think when you take that into consideration [that] prices have increased by 126% since 2013, modest growth is actually a good thing for the economy," he added.
Additional reporting: Alan Cantwell
