National Irish Bank's quarterly report on the economy says house prices have almost 'bottomed out' and in the second half of this year sales activity will return to normal.
NIB's economist Ronnie O'Toole, author of the bank's report, says the housing market in bigger cities will recover quicker than rural parts of the country.
'While supply continues to retrench, there are signs that housing demand might finally be stabilising,' Dr O'Toole said.
Ronnie calls the bottom!
'House prices are bottoming out some 15% off their 2006 peak levels and a more normal level of activity will return to the market in the second half of the year,' he added.