Twenty thousand homes will be built in 2010, according to a top Irish estate agent - an estimate supported by the Construction Industry Federation (CIF).

Hooke and McDonald have suggested only around 27,000 new homes will be built in Ireland next year - over a third less than in 2006, when new builds peaked at 90,000.

The estate agent predicted a further fall in 2010, down to 20,000.

A market analysis, published by the agents today, estimated the average house price had dropped by 30% since mid-2006.

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Economist with the firm, Geoff Tucker, said falling stock levels is a direct result of depleting demand, and the current volume of unsold properties in both the new and second hand market.

Mr Tucker suggested the next year could prove difficult, but a turning point could emerge if interest rates were cut further.

A CIF market analysis reaffirmed many of the points highlighted by Hooke and McDonald.

However, the body is confident that pent-up demand is inevitably going to shore-up current stock.

See: Unsold Housing Stock Lower Than Predicted, Says CIF

(PR/JM)