Prices have fallen very substantially in some areas of the country in particular New Homes took a hit earlier in the year and properties along the commuter belt took the bit in Q3. Combined with the fall in mortgage interest rates over the last number of years, housing has become significantly more affordable for a number of potential buyers. In addition recent data from the Irish Banking Federation shows that loans to First Time Buyers account for more than half of the total number of house purchase loans issued in 2010 so far. The number of loans issued to this group of buyers has only fallen by 4% relative to last year. This compares to double-digit declines for all other types of buyer over the same period.
According to the latest EBS/DKM Housing Affordability Index, the average first time buyer working couple is now paying just 12.6% of their joint income to service their mortgage, compared with 26% three years ago. Provided 2011 brings an improvement in the overall economic climate, as expected, and a greater degree of confidence and certainty regarding employment and income levels, it is possible that we will begin to see some increased activity among this group of potential buyers.
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