RATINGS AGENCY MOODY’S says that house prices will fall a further twenty per cent from today’s levels.
In a report released yesterday, the investor service said that the total aggregate peak-to-trough fall will be sixty per cent, adding that Ireland’s rate of mortgage arrears could be as high as 13.99 per cent.
“The steep decline in house prices since 2007 has placed the majority of borrowers deep into negative equity,” the agency explained.
“In this weak economic recovery, it will be difficult for distressed borrowers to significantly increase their debt servicing capabilities and so arrears are likely to continue increasing,” it warned.
Moody’s report contradicts findings by the the Irish Central Bank, which said last month that 10 per cent of mortgages were in arrears. Mortgage holders are said to be in arrears when they are more than three months behind in their payments.
The findings come as Allsop’s made public details of its latest cut price property auction.