House prices 'could drop 70% compared to peak'

A leading academic believes Irish house prices could fall by as much as 70% from their highest level during the Celtic Tiger years.

Kevin O'Rourke, a professor of economics at Trinity College Dublin, is quoted in today's Sunday Tribune as saying it would be better for the economy if house prices here quickly hit the bottom, rather than having a slump extending for years.

However, he admits to being one of the more pessimistic analysts.