Dublin house prices no longer undervalued, says Central Bank
Dublin house prices are no longer undervalued, according to economic models used by the Central Bank.
Last year research from the Central Bank had suggested prices were below where they should be based on the wider economy.
"At the trough the models said house prices may be undervalued, now the models are not suggesting that house prices are undervalued," he said.
But Central Bank Governor Patrick Honohan warned that the Central Bank "really don't know" whether house prices are too high or too low.
He cautioned that the economic modelling used to forecast house prices is far from perfect.
The Central Bank is clear that the recent sharp price rises in the capital were not driven by credit, he said.