There are calls for a tax incentive scheme to encourage so-called "empty-nesters" to trade down and free up much-needed family homes in Dublin.

The latest housing market monitor from the Irish Banking Federation (IBF) reveals a 30% increase in the number of properties for sale in the past year, as well as increases in the number of transactions and mortgage draw-downs.

The number of transactions increased by 19% and the number of mortgage draw-downs increased by 15%.

But it says it is too soon to say the market is in full recovery mode, but describes it as being in a "stabilisation" phase.

And despite recent increases in house prices in Dublin, it is also playing down talk of a property bubble in the capital saying prices were very low to begin with.

Investec Chief Economist Philip O'Sullivan says the shortage of family homes in Dublin poses a real economic threat and needs to be tackled.