Davy: House prices 'could fall by 70%' from peak

House prices could fall by as much as 70% from the peak of the boom, according to Davy Stockbrokers.

In a report today the company said the true extent of the price fall exceeds the 48% indicated by CSO figures.

Davy said auction data points to a fall close to 60%, but it is putting the decline at around 55% and is expecting further falls because of the ongoing difficulty in accessing credit.

It said prices could fall by as much as 65% to 70% of their peak values.

The ratio of house price relative to income is now back at mid-1990 levels.