House prices: why economists fear a 'painful correction'

Irish house prices are overvalued by up to 10 per cent, the Economic and Social Research Institute (ESRI) has warned, adding that an increasing number of households are carrying “elevated” levels of mortgage debt. That's not a large percentage when compared to the Celtic Tiger property bubble - so why is the think-tank cautioning it could still mean a 'painful correction'? Economics correspondent, Eoin Burke-Kennedy, explains why loan-to-income rates are creeping upwards, why house prices could come down but remain out of the reach of the average earner, and which global trends are preventing a price drop here.

Presented by Bernice Harrison. Produced by Aideen Finnegan.

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