House prices overvalued by at least 7%, says the ESRI    

ESRI not predicting sharp fall in house prices as supply still lagging behind demand

Household savings built up during the pandemic had helped push property prices to levels that are now out of kilter with fundamental prices, according to the ESRI.

House prices are at least 7% overvalued and property price inflation will likely slow sharply, the Economic and Social Research Institute has predicted.               

In its latest economic assessment, the leading think tank said the unwinding of some of the household savings built up during the pandemic had helped push property prices to levels that are now out of kilter with fundamental prices, even after taking into account the shortages of new homes.