Sheehy: Fall in house prices not all bad news

AIB chief executive Eugene Sheehy says house prices in Ireland have fallen by 15% since the end of 2006 and may drop again this year.

He says the decline in house prices from the peak reached in the final quarter of 2006 was not all bad news, even though it has left some borrowers in negative equity.

Speaking after the publication of the bank’s annual results yesterday, Mr Sheehy said the fall in house prices has improved affordability for first-time buyers.