Property market overview (Jan-Feb 2008)
Date: 10-03-2008
Source: IFG Group plc.
The number of house purchases rose significantly in February, according to new figures released today (Monday) by Ireland¹s largest independent mortgage brokers.
Data collated by IFG shows that there was a 33 per cent rise in the value of mortgages taken out to purchase houses in February when measured on a month-by-month basis.
This spike comes in the wake of several consecutive months of falling volumes and indicates that home buyers are beginning to see, and take, value in the housing market.
The IFG figures also suggest that private investors have taken advantage of price falls and are seeking profits again.
Overall, the total value of mortgages taken out in February was behind the comparable figures for 2007 but there were increases in some categories of loans.
“What we¹re seeing and what our brokers right across the country are reporting is signs of life,” said Suzanne McGuinness of IFG.
“It¹s not spectacular but it is significant. February was a far better month for us measured on a year to year basis than January was on the same basis.
“We measure the total value of mortgages taken out and this has been affected this year by the fact that the cost of houses, and therefore the loans needed to buy them, has fallen.
“The lenders have also brought in stricter criteria on mortgage approvals over the past number of months and, compared to February 2007, there are now higher interest rates. “But despite all of this we¹re actually seeing an up-turn in the fundamentals The IFG figures also show that the number of remortgages taken out in January and February is almost identical to the same period last year.
“Outside of Dublin our brokers tell us that there has been a noticeable upturn in the market for houses in the larger towns but that bigger rural properties are still struggling,” added Suzanne McGuinness.
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