Home prices in Ireland still on way down

Negative equity is damaging the long awaited recovery of the Irish property sector. Ratings agency Moody’s predict a further fall in residential property prices across Ireland to the tune of another twenty per cent. According to their research the firm suggests that almost 14 per cent of properties with a mortgage are in arrears of three months or more. If prices do continue to contract this will mean further misery for homeowners in the country and rising levels of negative equity. During the last five years after the market crashed in September 2007, following almost a decade of booming property market conditions, residential property prices fell by nearly 50 per cent, the economy is facing harsh times amid the euro crisis, unemployment figures remain high and without any meaningful signs of improvement on the horizon the misery felt by many struggling property owners is set to continue.