House prices ‘moderately overvalued’

HOUSE prices in Ireland were only modestly overvalued over the past few years, according to an EU report on eurozone property.

Prices were in line with the rapid growth of the economy and the disposable income of households, the special report said.

It said the drop of 30% in the average cost of housing may have brought prices to below what could be considered to be in line with the country’s GDP and household income.