House prices to fall 45% from 06

HOUSE prices in Ireland are set to fall by 45% from their 2006 peak as the banking crisis and rising interest rates continue to undermine the market.

In the period ahead, credit agency Fitch expects all lenders to increase mortgage rates. It said tax increases, high unemployment, wage deflation and an oversupply of properties “continue to undermine the country’s property market”.

It looks certain also that with economic sentiment staying negative for Ireland mortgage affordability “will suffer against a backdrop of a generally higher tax burden, increasing unemployment and negative to zero wage inflation,” said Michael