Bank thinks house prices may level out

THE Central Bank has softened its position on the threat of a house price bubble. Dr Michael Casey, deputy director general of the Bank, said he was "hoping for a soft landing" in the years ahead.

House prices could be over valued by up to 20% but the deputy governor thought the most likely scenario was that prices would peak and stay at that level for a long time.

That would mean a fall in prices in real terms, he said.