Two new surveys of Irish property, by Myhome.ie and Daft.ie, show that prices have fallen by 55 percent from their peak in Dublin, as well as massive drops in the rest of the country.
The property website surveys show that prices fell 3.2 percent to 3.5 in the July to September quarter. They show that house prices in Dublin are now 42 to 48 percent off their peak prices and they continue to fall.
Ronan Lyons, economist with Daft.ie said “It is very difficult to see how Nama will be able to meet its target of turning a profit or breaking even, given that it applied lower discounts to loans linked to properties than those linked to land”
According to Lyons, house prices in Dublin are unlikely to stabilize until the second half of 2012. He added that house prices outside Dublin may not stabilize until 2014 or 2015.
Currently between and 200,000 and 330,000 homeowners who bought property during the Celtic Tiger are now in negative equity.
Ireland’s national statistics office (CSO) carried a survey of properties in March 2011. In August, their results showed that house prices in Dublin had fallen below their 2007 peak.
Moody’s research shows that in Ireland at least nine percent of residential mortgages are in arrears by 90 days or more, however, repossessions in Ireland remain relatively low due to the introduction of laws which force the banks to renegotiate mortgage terms before repossessing.
The Irish Government will meet next week to consider how to deal with the growing percentage of people in arrears.
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