The ESRI is warning house prices across the country could still be undervalued by up to 27%.

An examination of the variables that influence property prices, such as unemployment levels, interest rates and the stock of housing supply is present in a new report from the Economic Social and Research Institute.

Researchers are re-stating their concerns about the need for an increase in housing supply.

David Duffy from the ESRI spoke to Newstalk's Breakfast about the report, saying the undervaluation is likely to be less than the extreme figure of 27% presented:

However, ESRI colleague Dr Kieran McQuinn warns prices will continue to rise unless more property becomes available:

Diagram from the ESRI graphs changing house prices between 2002 and 2013

Conall Mac Coille from Davy Stockbrokers says the danger with rising property prices is that in places like Dublin, where the most acute shortage of houses is being seen, people will try borrow more than they can comfortably afford to pay back: