According to a survey by the property website MyHome.ie in collaboration with Bank of Ireland, first-time buyers in the UK are taking on greater debt relative to their earnings than buyers for the first time since the Celtic Tiger, reports RTE.
According to the research, the average mortgage loan for a home purchase has also surpassed €300,000 for the first time and is up 7% from the previous year.
According to the report, annual asking prices increased by 8.4% last year, reports RTE.
Homes are selling for an average of 9% more than they were listed for, with one in seven going for 20% more.
According to data from the Central Statistics Office, during the previous 12 months, selling prices rose by about 10%, reports RTE.
According to data from the Central Statistics Office, during the previous 12 months, selling prices rose by about 10%.
Prices have “still not softened even as affordability has become stretched through 2024,” according to Conall Mac Coille, chief economist at the Bank of Ireland.
He said: “Demand is still fierce in the market and indeed has strengthened as the year has gone on,” reports RTE.
According to the survey, first-time buyers are taking out larger loans than they did previously, with first-time buyers borrowing 3.37 times their income in the first half of 2023 compared to 3.25 times in the same period last year.
This comes after the Central Bank relaxed mortgage lending regulations to prevent first-time borrowers from taking out loans equal to four times their income, reports RTE.
Half of first-time buyers had loans that were slightly below that level in the first half of the year.
According to Mr. Mac Coille, property prices will be supported by the European Central Bank’s rate decreases.
He stated that “with limited homes for sale any initial improvement in affordability may be diluted by homebuyers bidding up house prices”, reports RTE.
Although he acknowledged that “if anything this view could be too conservative,” Mr. Mac Coille is predicting a 4% increase in home prices this year.
“First-time buyers are also becoming older as purchasers are aged 36 years on average compared to 34 four years ago,” he stated, reports RTE.
According to the survey, there are signs that the rate of increase in rental property prices is slowing down in Dublin, where prices increased 2.5% over the course of the year but increased 8.9% outside the capital, reports RTE.
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