Belfast Telegraph

Housing market needs to attract new buyers

By David Elliot

An interesting headline on the front of our sister paper says that house prices in the Republic are €50,000 (£40,773) below their true value.

In essence, the Irish Central Bank believes houses are undervalued by as much as 26% and the slide has been as exaggerated as much as the boom.

The same could be said for our own housing market but the vital trigger for any market to begin operating is demand.

What the bank's doing here is making a market.

Commodity markets do it all the time when they have a new product, getting market-wise traders to put a bid and an offer price on the likes of cocoa beans for December 2013 delivery.

So maybe the central bank's trick will work and bring buyers to the market.