However, residential prices are now about 9 per cent lower than this time last year, although there are tentative indications that the pace of decline in prices has eased somewhat. It is important to bear in mind that these developments should be seen as part of a necessary adjustment following many years of exceptional house price inflation.
For instance, prices rose by about 12 per cent in 2006 alone and by over 50 per cent between 2002 and 2006. With respect to future price developments, as I stated recently, residential prices are now returning to more realistic levels.