Irish house prices are ‘overvalued’

HOUSE prices in Ireland are “seriously overvalued” according to Pam Woodall, the Economics Editor of The Economist Magazine.

According to Ms Woodall, house prices in Ireland and other economies where they are similarly overvalued could fall by at least 20% over the next five years with major consequences for the broader economy in these countries.

But according to David Duffy, economist at the ESRI, the key to understanding the Irish housing market was to appreciate that it was not operating in isolation.