A declining number of switchers and mover purchasers has resulted in a continued slowdown in the mortgage market.
That’s according to the latest figures from Banking and Payments Federation Ireland (BPFI), which show that just over 3,200 mortgages were approved in January – down almost 12% on the same month last year.
The latest data shows that approvals dropped across all customer groups, with the exception of first-time buyers.
In total 1,991 mortgages were approved for this group, up almost 5% on the first month of 2023.
In contrast, mortgage switching activity dropped almost 50%, with just 228 approvals in January.
Meanwhile, the number of mortgages approved for mover purchasers dropped over 17% to just 680 – the lowest January figure since 2016.
"Movers play an important role in housing by bringing second-hand homes to the market but in recent years we have seen a decline in the number of properties being advertised for sale and much of that second-hand supply has come from investors selling up," said Ali Uğur, Chief Economist, BPFI
"While we traditionally focus on the supply of newly built homes, with demand for housing so strong, we need the second-hand home supply to increase as well," he added.
Overall, mortgage approvals in the month of January were valued at €919 million, down over 9% on the same time last year.
First time buyers accounted for €577 million, while mover purchasers for €227 million and switchers for €79 million.
You can find your next home now on MyHome.ie.
