Latest news with #MortgageMarketProfileReport
RTÉ News
12 hours ago
- Business
- RTÉ News
First time buyer property and mortgages rise significantly
One in three first time buyer (FTB) homes were valued over €400,000 in 2024, three times the 2019 share, according to the latest BPFI mortgage report. The Mortgage Market Profile Report H2 2024, by Banking and Payments Federation Ireland shows that there has been a significant increase in FTB property and mortgage values between 2019 and 2024, as well as an increase in mortgage repayments and incomes. This latest report in the series, looks at the profile of borrowers, their loans and property types on a national and regional basis. For first time buyers the median property value rose by over €100,000 between 2019 and 2024, up 37% to almost €372,000. During the same period the median mortgage value increased by €78,000, or 36%, to almost €294,000. While the median basic household income for first time buyers increased by 22% from €70,000 in 2019 to €85,000 last year. There was also an increase in the share of higher value mortgages, over €300,000, which doubled to 44%. The share of lower value mortgages, up to €200,000 more than halved to 21%. Speaking on RTÉ's Morning Ireland BPFI CEO Brian Hayes said the increasing house price inflation is no great surprise because we have too many people chasing too few homes. "It highlights the kind of pressures that the first time buyer is in, where on average they have to get a lending position just short of €300,000 and on average they're buying a House of about €370,000. "Now the other side of that is, of course, that over the same five year period the average increase in first time buyer incomes is up about 22%., so you have this kind of perfect storm, a lot of people chasing too few houses, incomes rising and the economy at full tilt. "And I think there are particular issues for first time buyers, which I think everyone recognizes." The Central Bank has this week revised downwards its forecast for how many homes will be built this year ( to 32,500) and over the following two years. Mr Hayes noted that the banks are fundamental to the financing of not just mortgages, but also to the financing of development finance, adding that a third of all the homes built in the last two years have been built by the Irish banking sector in terms of development finance. "What's critically important is that we get international capital back, the big difference in the last two years has been the the fall off in international capital. "My message is that international capital goes where its welcome and it stays where it's well treated and it wants to see consistency. "I think the international capital that is critical for apartment development, the banks play a big role in that, not only do we take part of the lending position there, but we also act with international capital, because we have distribution models, we know the economy and we know the sectors. "International Capital Partners with the banking sectors here in Ireland and we need that partnership up and running again and I hope the certainty that the government have now given on the rent pressure zone will help that international capital to come back to the country."
Irish Examiner
a day ago
- Business
- Irish Examiner
First-time buyer average income grew by €15k while home values increased by €100k, says report
The average basic income of first-time buyers seeking a mortgage grew to €85,000 during 2024 as their average mortgage size also stood at just under €300,000, new data from the Banking and Payments Federation, Ireland (BPFI) shows. As part of its latest Mortgage Market Profile Report for the second half of 2024, the BPFI compared the mortgage values and income level of buyers with levels seen in 2019. It found that in the five-year period, the median basic household income for first-time buyers looking to purchase a home increased by 22% from €70,000 in 2019 to €85,000 last year. In that same period, the median first-time buyer mortgage value increased by €78,000, or 36%, to almost €294,000. The property value of the homes first-time buyers are looking to purchase increased by over €100,000 over that five-year period to almost €372,000. It also found that 36% of first-time buyers' homes exceeded values of €400,000 in 2024, three times the 2019 share. Regional breakdown In terms of a regional breakdown, the BPFI said that all areas saw a substantial increase in median mortgage values with the median first-time buyer mortgage value increasing by €90,000 or more in three regions which included Wicklow, Galway and the Midlands. Brian Hayes, chief executive of the BPFI, said these figures reflect the 'broader housing price trends with the national median residential property price increasing from €259,000 in 2019 to €355,000 in 2024'. 'On a regional basis, more than half of first-time buyer properties in Wicklow, 64%, and Dublin, 58%, were valued at more than €400,000. By contrast, more than 85% of first-time buyer properties in Limerick and the Border, Midlands, South East, West and South and Mid West regions were valued up to €300,000.' Mr Hayes added that the average home mortgage value reached 'new peaks in 2024' a trend which has continued into the start of 2025. The median average mortgage payment for first-time buyers has also risen by almost €500 to €1,400 since 2019. 'Four out of 10 first-time buyer mortgages had repayments over €1,500 and in three regions. Wicklow, Dublin and Kildare, more than half paid more than €1,500,' Mr Hayes said. Mover-purchasers The average household income of a mover-purchaser increased by 23%, or by €22,000, to €120,000 over the same timeframe. More than half, 58%, of mover mortgages had repayments over €1,500 in 2024, up from 33% five years earlier. The average monthly repayment for a mover-purchaser mortgage stood at €1,717 in 2024. Dublin had the highest median property and loan values as well as basic household incomes of all customer types during the second half of 2024. Cork was the second largest county market last year accounting for 11.7% of first-time buyers and 10% of mover-purchasers. With 3.3% of total home mortgage drawdowns in the latter half of 2024, Limerick continued to be the smallest region in the country for mortgage activity. Read More First-time buyers fuel rise in mortgage approvals
