The Irish property market is looking up as the amount of mortgage approvals have increased. But real estate agents are saying that, as there appears to be an influx of mortgage applications, there does not appear to be a sufficient number of new homes to be purchased in the country. Despite suffering an 18-month slump in the market due to the Covid-19 pandemic, schemes and applications delayed due to the pandemic are now being processed.
Managing director of new homes with Sherry FitzGerald, Ivan Gaine says that the market is coming out of its slumber as there is a huge pent-up demand.
It’s understood that mortgage approvals stood at a whopping €1.28 billion in July last year with first-time buyers accounting for more than half of all applications approved. According to David Browne, director of new homes with Savills, there is a stronger interest in buying new homes. This as there has been an increase in people who have been unsuccessful in bidding on second-hand homes, and are attracted by the price certainty of a new home.
Browne adds that those who have been renting may also be compelled to buy, given the fact that buying is still considerably cheaper than renting.
However, the supply of new homes is questionable, as Browne says that the supply issue remains.
LSL News.