A sense of impending doom has been a huge part of economic and political decisions within the last few months due to the ever uncertain Brexit debacle. These feelings are slowly beginning to fade in Ireland due to the increased time that Irish businesses and banks have had to prepare for the EU split. Although this event is bound to cause slight fluctuations, economists have noted that the economic future for Ireland is still bright.
Banks and buyers alike are taking note of this promise, which has been obvious through the most recent data in relation to mortgage approvals and house prices. According to recent bank data, there has been a significant rise in the number of home related mortgage applications and acceptances.
The Irish Bank and Payment Federation found that from April to June, there were 10,157 mortgages taken out, which is an 8.8pc rise from the previous period. Using yearly comparisons, it has been shown that the issued mortgage rate this time last year was around 800 acceptances lower. It topped the approvals for the first three months of this year by at least 1,580.
This influx in consumer luck has turned out to be perfect timing for home buyers. With seemingly more economic stability on the horizon, lending drawdowns are lowering and amount of buyers in the market are increasing. With supply of buyers so high and economic stability more promising, many home sellers are reducing their prices to more accurately depict the amount of potential home buyers on the horizon.
The banking federation noted that first time buyers are currently making up around half of the mortgage market, with refinancers coming in at a close second. Remortgaging has gone up significantly with year to year comparison figures showing a rise of 143.
There are many reasons as to why these rises have occurred, but what we can be sure about is that this increase in approvals is positively impacting the economy as of now. With more money in the housing market, the exchange of currency is bound to continue feeding growth.
Overall, these statistics have been noted by the director of public affairs at the federation Felix O’Regan has mentioned that number and value of mortgage approvals has shown positive growth in an area that was heavily limited as of late.
