The average mortgage for a first-time buyer in Ireland has hit a record high of just under €290,000, with buyers paying €88,000 more for a house now than they did five years ago.
That’s according to the latest figures from Banking and Payments Federation Ireland (BPFI).
Their latest mortgage market report shows that mortgage values are at the highest since 2003, when they first started recording the data.
Home mover mortgage values are also at a record high, reaching an average of €329,873.
However, the figures show that mortgage volumes are well below peak levels of the mid-2000s across most segments.
The exception was first-time buyer drawdowns on second hand or existing properties, which was approaching the previous peak of 7,726 in the first half of 2006.
As a result of rising property prices, the national median first-time buyer property value increased by about €88,000 between the first half of 2019 and the same period in 2024 to €360,000.
The median home mover property value increased by €109,000 to €470,000 over the same five-year period.
The median FTB property values increased by €100,000 or more between the first half of 2019 and the first half of 2024 in Wicklow, Galway, Limerick and the Midlands, where there has been a shift in activity from second hand to new properties.
Overall, the report shows that the number of first-time buyer mortgages to buy or build new properties reached the highest first half figures since 2008 at 3,997.
Meanwhile, the number of first-time buyer mortgages on second hand properties fell to the lowest first half level since 2021 at 7,224.
The volume of mortgages for home movers on new properties fell to 806 in the first six months of 2024, the lowest first half level since 2015.
The median income for first-time buyers using a mortgage for a second hand property increased by 5.3% year-on-year to €79,000, while the median income for those buying or building a new property decreased by 3.8% to €90,000.
"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," said Brian Hayes, Chief Executive of BPFI.
"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," he added.
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