Housing crash on horizon, says report

HOMEOWNERS are facing a property market crash where the value of their house will be worth 20% less than what they paid for it, an economic report has warned.

A survey of house prices in Europe and the US predicts that within four years several countries, including Ireland, could experience a housing crash more serious than the recent stock market collapse.

The Economist magazine eport says thousands of Irish homeowners face the prospect of negative equity in the near future, where the value of their house is less than the money they borrowed to buy it. This scenario is particularly likely if there is no upswing in the global economy, the report adds, and many economies will be plunged into recession.