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Irish house prices to fall by another 20pc warns rating agency Moody’s

IRISH house prices are expected to fall by another 20pc, according to a new report by Moody’s Investor Services.

The report states that house prices have fallen by 49.9pc between September 2007 and April 2012.

''Moody's expects that house prices will fall a further 20pc from today's levels (bringing the aggregate peak-to-trough fall to 60pc)," it added.

It added that the majority of Irish homeowners are now “deep into negative equity.”

And it also said that he performance of Irish prime residential mortgage-backed securities continued to deteriorate during the three months ended April 2012.

Given the current climate, Moody's said the Irish economy would only grow by 0.2pc in 2012. "In this weak economic recovery, it will be difficult for distressed borrowers to significantly increase their debt servicing capabilities and so arrears are likely to continue increasing,'' it warned.