House prices set to fall a further 20%

The property market is still in freefall according to the ratings agency, Moody’s, which is predicting house prices will fall a further 20%.

Research by Moody’s into the performance of the Irish prime residential mortgage-backed securities has found that the number of mortgages in arrears of more than 90 days and more than a year have reached a new peak of 13.99% from 11.98%.

Based on these figures Moody’s predicts that the steep decline in house prices since 2007, that has placed thousands of home owners in negative equity, is set to continue.