House prices ‘could fall by 67% from peak’

INTERNATIONAL credit ratings agency, Fitch Ratings has warned of “further downside risks” to Irish house prices; adding that prices could ultimately fall by 67% from peak levels in a worst-case scenario.

In a new report on the Irish housing market, Fitch said it realistically expects prices to show a total drop of 50% from their peak around four years ago. However, it added that while that rate of decline forms “the most likely scenario“, a worst-case scenario would result in a full-term 67% drop in house prices.

“Irish house prices continued declining during 2010 and now are approximately 42% below the peak.