According to recent statistics, the average mortgage value for a first-time buyer has reached a record high of little less than €290,000, reports RTE.
According to data from the Banking and Payments Federation Ireland (BPFI), mortgage values are at their highest point since the organisation began keeping track of them in 2003.
With an average of €329,873, home mover mortgage values are likewise at an all-time high.
Nonetheless, the data indicates that mortgage volumes in the majority of categories remain well below their mid-2000s high levels, reports RTE.
FTB drawdowns on existing or second-hand properties were an exception, since they were getting close to the previous peak of 7,726 in the first half of 2006.
Between the first half of 2019 and the same period in 2024, the median property value for first-time buyers nationwide rose by around €88,000 due to growing real estate prices, reaching €360,000, reports RTE.
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Over the same five years, the median house mover property value rose from €109,000 to €470,000.
Due to a change in activity from second-hand to new residences, the median FTB property prices in Wicklow, Galway, Limerick, and the Midlands grew by at least €100,000 between the first half of 2019 and the first half of 2024.
According to the report, 3,997 FTB mortgages were issued for the purchase or construction of new homes, the most since 2008, reports RTE.
In the meanwhile, there were 7,224 FTB mortgages on second-hand houses, the fewest since 2021.
In the first half of 2024, the number of mortgages for house movers on new homes dropped to 806, the lowest level since 2015, reports RTE.
While the median salary for FTBs purchasing or constructing a new home fell 3.8% to €90,000, the median income for those utilising a mortgage for a second-hand house rose 5.3% annually to €79,000.
“Overall, it’s clear that the mortgage market is continuing to evolve toward higher-value properties, as homebuyers prioritise energy-efficient and more modern homes. We are also seeing the continuation of the trend identified in previous reports where Dublin-based FTBs are increasingly looking to locations outside of the capital,” said Brian Hayes, Chief Executive of BPFI, reports RTE.
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