10% fall in house prices is ‘necessary’

THE near 10% fall in house prices is a necessary adjustment as residential property prices fall to more realistic levels, according to Central Bank governor John Hurley.

Mr Hurley in a speech to the Institute of Internal Auditors in Trim said the gap between the price of residential property and the fundamentals supporting it was beginning to close.

“Affordability has begun to improve again due to lower house prices and changes to stamp duty and mortgage interest relief,” he said.