Feb. 3 (Bloomberg) -- About 80 percent of Irish residential mortgage balances may be in negative equity when house prices bottom, based on a “crude extrapolation” of figures by central bank economists, according to Eamonn Hughes, an analyst at Goodbody Stockbrokers.
Some 31 percent of mortgage properties, representing over 47 percentage of outstanding hoome loan balances were in negative equity at the end of 2010, economists Gerard Kennedy and Tara McIndoe-Calder said in the Dublin-based bank’s quarterly report, published yesterday.
That estimate is based on a 38 percent drop in house prices from their 2006 peak. Goodbody forecasts that values will fall about 60 percent from their peak.
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