REVEALED: First time buyers taking on more debt than UK 'since Celtic Tiger years'

The latest house price report from MyHome, associated with Bank of Ireland, has revealed key information on the current and future state of the Irish property market.

"Rising levels of homeowner debt, along with falling interest rates, are set to drive continued fierce competition in the market and put more upward pressure on home prices this year," the report has revealed.

“The message from this report is that pricing has retained its momentum, and has still not softened even as affordability has become stretched through 2024," said Conall MacCoille, Chief Economist at Bank of Ireland.
 
“Demand is still fierce in the market and indeed has strengthened as the year has gone on. This demand has been impacted by rising mortgage approval values, and the first-time buyer market is particularly hot," Mr MacCoille added.
 
First-time buyers, according to the report, are now two years older than their UK counterparts on average and are taking on more debt relative to income than them for the first time since the Celtic tiger years.

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“There are some modest signs of improvement. There were 6,400 new homes listed for sale in the first nine weeks of Q4 2024, up 8% on the same period of 2023 and housing completions in Q3 2024 were up 6% on the year to 8,900.  Of course, the acid test will come in the spring, as new listings tend to start to accelerate ahead of next summer,” Mr MacCoille said.

Joanne Geary, Managing Director of MyHome, said: “Our latest report shows the extent of the demand in the property market, with residential transactions on average being settled at 9% over the asking price and annual asking prices nationwide at their highest level since summer 2022."

Key information from report summarised:

• National asking prices up 8.4% over the year, the highest rate of annual inflation since summer 2022
• The average mortgage loan for house purchase has exceeded €300,000 for the first time and is up 7% on the year
• First-time buyers taking on more debt relative to income than UK counterparts for first time since Celtic tiger years
• The average residential transaction now being settled for 9% over the asking price, with one in seven homes still settling for a minimum of 20% over the asking price
• Falling interest rates will help affordability, but this may be diluted by homebuyers bidding up house prices
• Forecast is for 4% rise in Irish house prices in 2025

One in five Irish people expect to be still paying off their mortgage in retirement, according to a new survey from @RoyalLondonIre.https://t.co/5mSzgsIcBf

— MyHome (@MyHomeProperty) December 11, 2024