The average mortgage loan for a house purchase exceeded €300,000 for the first time last year, according to the latest quarterly report by property website MyHome.ie.
The average residential mortgage loan was €308,200 in the third quarter, up 7 per cent on the year. In October the average mortgage approval rose to a fresh high of €321,000, up 8 per cent on the year, the report noted.
In the fourth quarter the median asking price for properties listed on MyHome, which is owned by the same group as BreakingNews.ie, was €365,000, up 8.4 per cent year-on-year. In Dublin the figure was €450,000, up 5.9 per cent year-on-year. This was the softest rate of inflation in the capital for 12 months.
In the counties surrounding Dublin, Kildare recorded a median asking price of €310,000, up 10.7 per cent on the year. In Meath the median price was up just 1.7 per cent on the year to €300,000, and was flat in Wicklow at €395,000.
For the rest of Ireland price inflation amounted to 9.8 per cent, the highest level for 2½ years.
The report also found that deals were being settled at 7.4 per cent above the original asking price, which is a new high. In Dublin the median transaction was 8.6 per cent above the asking price.
First-time buyers
The average first-time buyer purchase price was €375,000 in the first half of last year, up €21,000 or 6 per cent on the year. Some €7,300 of this additional amount was accounted for by larger deposits, according to Bank of Ireland chief economist Conall MacCoille, author of the report.
Mr MacCoille also noted that the average age of first-time buyers hit 36 years in the first half of 2024, up from 34 in 2020, and putting them two years older than the UK average. These buyers spend on average around 28 per cent of their post-tax disposable incomes servicing their home loans, although Mr MacCoille expects this to fall back to 25 per cent or lower as a result of rate cuts by the European Central Bank.
Mr MacCoille is forecasting an average price rise of 4 per cent. He expects completions to rise to 42,000 from 33,000 last year, and to increase to 46,000 for 2026.
He said pricing has retained its momentum, and has still not softened even as affordability has become stretched through 2024. “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.”
There were just 11,500 listings on MyHome in December, and such is the competition to secure homes that the average sale time hit a new low of three months.
According to Joanne Geary, managing director of myhome.ie: "Any stock that has come on the market has been snapped up and we now are close to a historic low in terms of the average time to sale agreed.
"A key metric to note as the year progresses will be housing completions. Our forecast of 33,000 completions for 2024 is on track, and we expect to see 42,000 in 2025, and 45,000 in 2026. Of course, we need to see a consistent increase in homes coming on to the market to help satisfy our surging demand."
