15% drop in number of homes in negative equity

The number of homes in negative equity has dropped by around 15%.

A report by the ESRI says

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recent increases in house prices have reduced the number of homes in negative equity, with the greatest drop in Dublin.

Latest official figures reveal the cost of buying a house in Dublin has surged almost 25% over the past year.

At the end of 2012, there was a peak of 314,000 homes worth less than their outstanding mortgage.

Economist with the ESRI David Duffy said: "On the back of what we've seen happen to prices throughout the second half of 2013 and people continuing to repay their mortgages, the number of mortgage-alone homes in negative equity has fallen by about 15%, or by about 45,000 mortgages."

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