Late last week, the ESRI made the headlines with its latest assessment of the housing market. Unsurprisingly, it found that Irish housing prices are high. Perhaps disappointingly, however, this was portrayed in the media as overvaluation, in the Celtic Tiger sense of the word. The headline estimate, which comes from an article by Paul Egan and Dónal O’Shea in the Autumn Quarterly Economic Commentary, is that Irish housing prices are running about 17% above the level that economic fundamentals would justify. It is built using four different techniques that are combined into a composite. For reference, in 2006, the equivalent…

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