Homeowners could be trapped in negative equity until 2020s
It is estimated that between 300,000 to 350,000 homeowners in Ireland are in various stages of negative equity — where the value of their property is worth less than the balance owed on the mortgage.
Based on house price figures from the Central Statistics Office (CSO), a property that was purchased in early 2007 for €311,000 would be worth about €177,000 today — a 43% drop. This property could be worth less than €170,000 by the end of this year if prices keep falling by at least 1% per month.
