- Two thirds of first time buyers plan to buy in the next 12 months - up7%
- 78% have funds required to pay a deposit
- Dublin is still the favored location
Two out of three first time buyers say they intend to buy a property in the next year according to a new survey by leading Irish property website MyHome.ie.
This figure is up from 57% last Autumn while the number who do not intend purchasing has halved from 12.5% to 6.3%.
The majority of first time buyers expect to make the purchase in a 6 to 12 month timeframe while a similar number, 58%, expect house prices to fall slightly in the next twelve months.
Seventy eight per cent of first time buyers now have the funds required to pay a deposit, up 20% from last September.
A similar number, 75% have either received or are seeking mortgage approval, the same percentage as in September 09, suggesting first time buyer activity in the market has held firm over the last six months. Thirty six per cent have received mortgage approval but haven't purchased a property yet while 39% are actively seeking a mortgage.
Of those who say they won't be purchasing in the next year 27% said they were waiting for price to fall further, while the same number cited the current economic climate. Sixteen per cent said the lack of mortgage approval meant their plans were on hold.
Angela Keegan, Managing Director of MyHome.ie said the figures showed an encouraging trend as we head into what is traditionally the busiest buying period.
'The fact that a third of first time buyers have mortgage approval is heartening as is the fact that almost 80% of first time buyers have the funds for a deposit. It is also clear that Dublin will be the first market to see increased activity as 64% of first time buyers wish to buy in the capital. A further 13% are focused on purchasing in the traditional commuter counties of Meath, Wicklow and Kildare' Keegan said.
Not surprisingly first time buyers are also looking for cheaper property with 5% fewer respondents looking to buy a property between 300K and 350K, 4% more searching in the 200K to 250K. The three bed semi is the property type of choice as apartments continue to remain out of favour.
In his analysis of the results, independent economist Paul Murgatroyd, said first time buyers clearly do not expect market and economic conditions to deteriorate significantly within the next twelve months.
'There is an expectation that house prices still have slightly further to fall (58% believe they will) but this survey reveals that this is clearly not the most critical factor for them when it comes to purchasing. Sixty four percent say they still intend to purchase in the next 12 months. This supports research which shows that location is a more important criterion than price for the first time buyer' he said.
Murgatroyd said first time buyers are now the largest proportion of people taking out mortgages for residential property and it is very pleasing to see that over three quarters of respondents have saved money for a deposit, up 4% from last autumn.
'While some first time buyers have been taking a wait and see approach to the property market over the last six months, most have clearly continued to save during that period, displaying the type of discipline favoured by lenders. This is a very positive development, especially in the current economic climate' he concluded.
Ends
For Further Information
Contact Kieran Garry,
Gordon MRM
01-6650455 or 087-2368366
Note to Editor
Findings based on survey of 539 first time buyers who were surveyed between 8/03/2010 and 15/03/2010.
