A soft landing is still the most likely scenario, but the re-acceleration in house prices has increased the risk of a sharp correction in the future.

Central Bank

Lenders and borrowers need to be aware that interest rates are still low and that this cannot continue indefinitely.

Economic and Social Research Institute (ESRI)

There is euphoria in the property market and high dependence on the sector leaves the economy open to shocks, the ESRI warned last December.

The Government needs to introduce policies to cool the market down.

Organisation for Economic Co-operation and Development (OECD)

Large tax advantages and lenient credit policies have led to an overvaluation in Irish property prices, but the market is unlikely to crash.

Economic growth, demographics and low interest rates have kept the market buoyant.

AIB

Average house prices in a "red hot" market will rise by 12 per cent this year, but even higher increases are likely in many areas, and affordability is worsening.

Further growth of 7 per cent is forecast for next year, with a soft landing postponed until 2008.

Bank of Ireland

Annual rates of house price inflation may exceed 13 per cent in the next few months, but total house price growth in 2006 will fall short of double digits at 9 per cent and drop to 3 per cent next year.

Rising interest rates are the key challenge for the market.

Consumers

Fears of a property crash are fading - over 80 per cent of consumers expect some increase in house prices in the next year, according to the latest IIB / ESRI consumer sentiment survey.

One in three consumers expect prices to "increase a lot" up from one in five consumers who said the same thing last year.