House prices still have far to fall
David McWilliams is stating the obvious when he predicts a further massive decline in house prices in the Republic (Irish Independent, August 18).
What he didn't say, but the historical value of housing in Ireland shows, was that the long-term value of housing is a multiple of the average industrial wage. In the case of Ireland, this has been a factor of about four.
Any factor above this has always been corrected by the market with prices dropping to meet the factor of four.