In sign Irish banks a long way from solvency, Irish property prices continue to decline

According to an Irish Times article, the decline in the price of houses in Ireland is accelerating.

This would be a problem for the Irish banking system if it were already current in recognizing the losses on the mortgages on the banks' balance sheets.

This is a bigger problem given that the banks have so far deferred working with the borrowers and calls into question the "solvency" of the two re-capitalized Irish banks.

Irish house prices continued to fall last month with the rate of decline actually increasing when compared with 12 months ago. 

The latest figures from the Central Statistics Office (CSO) indicate that prices dropped 1.5 per cent in September and they show the decline since the beginning of the year now standing at 14.3 per cent.... 

The comprehensive index, which was first published by the CSO earlier this year, gives detailed data by type of property (house/apartment) and by geography (Dublin/non-Dublin).... 

Looking at the broader picture, house prices in Dublin are now 49 per cent lower than at their highest level in early 2007 while apartments in Dublin have fallen by 59 per cent since February 2007. The fall in the price of residential properties across the rest of the State is 40 per cent.