The rush to buy starter homes in the greater Dublin area has abated in the past fortnight, according to some agents. The fall off in sales will not come as any great surprise to many developers who are accustomed to a slowdown in the run up to Christmas. Several developments which sold out earlier phases within a matter of hours or days are now selling more slowly, averaging around a dozen houses a week.

Estate agent Gerry Leahy, who specialises in new homes, says he believes all the heavy buying for 1998 has now been completed and he expected that there would only be a trickle of sales between now and the end of the year. He says the heaviest sales were recorded in March and April when many people bought earlier than they had planned because of the fear that prices would continue to spiral. This had led to a quieter autumn selling season than usual.

The apartment market in Dublin has, by comparison, remained strong right through the year with most schemes being sold out within days. There has been particularly strong interest in the Section 23 apartment market, which has to be wrapped up before the tax incentives expire at the end of next month. Agents are forecasting renewed demand for starter homes next spring when buyers are likely to have a greatly increased number of developments from which to choose. However, the market is expected to remain price sensitive. Builders pitching prices well over the odds may have to contend with a long-running selling campaign.