Typical FTB property value increased by €88,000 in the five years ending H1 2024, according to latest BPFI mortgage report
- Median FTB property value increased by €100,000 or more in Wicklow, Galway, Limerick and the Midlands in five-year period between H1 2019 and H1 2024
- Average FTB and home mover mortgage values reached their highest levels since the data series began in 2003
- Mortgage volumes remain well below peak levels of the mid-2000s in most segments, and as low as 8% of peak volumes for home movers buying new properties
Friday 20th December 2024 – The latest Mortgage Market Profile Report H1 2024, published today by Banking & Payments Federation Ireland (BPFI), shows that the national median first-time buyer (FTB) property value increased by about €88,000 between H1 2019 and H1 2024 to €360,000, while 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 H1 2019 and H1 2024 in Wicklow, Galway, Limerick and the Midlands, where there has been a shift in activity from second hand to new properties.
This latest report in the series, which looks at the profile of borrowers, their loans and property types on a national and regional basis, also shows that the average mortgage values have reached new highs with the average first time buyer (FTB) and home mover mortgage values rising to their highest levels since the data series began in 2003, at €289,126 and €329,873 respectively. By contrast, mortgage volumes remain well below peak levels of the mid-2000s in most segments, and as low as 8% of peak volumes for home movers buying new properties. The exception was FTB drawdowns on second hand or existing properties, which was approaching the previous peak of 7,726 in H1 2006.
Other key findings from the report show:
- The number of FTB mortgages to buy or build new properties reached the highest H1 figure since 2008 at 3,997. By contrast, the number of FTB mortgages on second hand properties fell to the lowest H1 level since 2021 at 7,224.
- The volume of mortgages for home movers on new properties fell to 806 in H1 2024, the lowest H1 level since 2015
- The median income for FTBs 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. The median income for mover purchasers using a mortgage in H1 2024 was €118,000.
Commenting on today’s report Brian Hayes, Chief Executive, BPFI said: “Today’s Mortgage Market Profile highlights the considerable increase in median property values over the past five years, especially in regions like Wicklow, Galway, Limerick and the Midlands where the median FTB property value increased by €100,000 or more. Looking more closely at these four regions, there has been a clear shift from FTB mortgages for lower value second hand properties to higher value new properties. In fact, the share of FTB mortgages secured on second hand homes valued up to €300,000 fell by about 20 percentage points between H1 2019 and H1 2024 in each region. Over the same period, in Wicklow, Galway and Limerick, the share of FTB mortgages secured on new properties valued over €300,000 increased by about 20 percentage points. In the Midlands, some 38.6% of FTB mortgages in Q1 2024 were on new properties valued over €300,000, up from 5.7% five years earlier.”
Mr Hayes added: “Reflecting rising property prices, we’ve also witnessed a significant upward shift in average home mortgage values which reached new peaks in almost all segments in H1 2024. One of the key drivers of this trend is the notable shift towards new builds, which are designed to meet modern standards such as higher energy ratings and typically command a higher price. This is amid rising incomes and a record employment rate, with the number of people employed in the Irish economy increasing by about 442,000 between Q2 2019 and the second quarter of this year.”
Mr Hayes concluded: “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. 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.”
Regional differences in the mortgage market across the country
The BPFI Mortgage Market Profile Report also provides a wealth of data on the regional breakdown of the mortgage market.
Key regional findings from the report include:
- Dublin was the largest regional market in the twelve months ending June 2024 with 31.5% of the share of home mortgage (FTB and mover purchase) volumes.
- Almost a quarter (24.3%) of all home mortgages drawn down nationwide in H1 2024 were FTB mortgages on second hand properties in Dublin.
- Cork was the second largest regional market in in the twelve months ending June 2024, with 11.6% of the share of home mortgage volumes. It had the largest share of FTB mortgages on new properties in H1 2024 at 17.2%.
- The median property value of FTBs buying or building a new property in Wicklow increased by 4% year-on-year to €470,000 in H1 2024, the second highest property value in this customer segment and only €5,000 less than in Dublin.
- The median FTB property value in the Midlands increased by 59% in the five years ending H1 2024 to €302,000, with the median property value in Laois some 73% or €135,000 higher. By contrast, Dublin had the lowest proportional increase of any county at 25%.
- The South East overtook Kildare as the third largest regional FTB mortgage market in H1 2024, with 8.7% of FTB mortgage volumes, up from 7.9% a year earlier.
- In the South and Mid West, 73% of mortgages on new properties were for self-builds, the largest share across all twelve regions.
- In the West, the median household income for FTBs buying an existing property was €63,000, the lowest of all regions while the median property and loan value for that segment were €218,000 and €180,000, respectively, also the lowest of all regions.
Ends/
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Fiona Murphy, Head of Communications, 087 9740046, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
