MORE than 40% of boom-era house buyers remain in negative equity, according to the Central Bank of Ireland, despite reducing their debts with almost a decade of mortgage payments and a recovery in property values since 2012.
Figures released last week show those who bought between 2005 and 2009 are most at risk. The worst time to buy was 2007, when property prices peaked, with 43% of house buyers that year still owing more than their houses are worth.
Negative equity affects 38% of buyers in 2006, 36% in 2008, 22% in 2009 and 20% of those who got on the property ladder in 2005.
“Climbing out of negative equity is a slow process,” said Juliet Tennent, an economist at Goodbody Stockbrokers. “House prices have recovered but they’re still 37% below peak levels.”
Glimmer of hope for homeowners looking to trade up, Comment