Latest news with #TrevorGrant
Irish Examiner
6 days ago
- Business
- Irish Examiner
First-time buyers relying on their parents 'digging very deep' to help them buy a home
First-time buyers are relying on parents 'digging very deep' to help them purchase a home, as new statistics show the median price of a home in Ireland has risen by €35,000 in the last year. The Central Statistics Office's (CSO) latest Property Price Index for May showed property prices in Ireland rose 7.9% in the last year, as inflation continues at a relentless pace in a market starved of the supply it needs to meet demand. This is the 21st month in a row of house price inflation, according to the CSO statistics. The median price of a home bought in Ireland in the last 12 months was €370,000, as prices rose at a higher rate outside of Dublin than in the capital. The median is the middle figure in a row of numbers sorted from top to bottom, as opposed to the average. Prices in Cork and Kerry (up 8.2%) are also rising at a faster rate than those in Dublin (up 6.9%), with the cost of buying a home now almost 20% higher than the Celtic Tiger peak. In the last 12 months, the most expensive Eircode in the country to buy a property was A94 Blackrock in Dublin, with a median price of €770,000 while F45 of Castlerea in Roscommon had the lowest, at €150,000. In each month of the year so far, fewer than 1,000 new homes have been purchased in Ireland, with the majority being second-hand. In May, 3,824 homes were purchased. Just 911 of them were new homes. And 1,388 of these buyers were first-time buyers, according to the CSO statistics. With fears essential infrastructure delays will hit the supply of homes, and the strong likelihood of housing delivery being significantly below Government targets this year, industry stakeholders warned home buyers are competing for an 'ever-shrinking pool of second-hand homes'. "Affordability pressures remain severe,' Irish Mortgage Advisors chairperson Trevor Grant said. We've also seen properties regularly selling well above asking price, with recent reports stating that one in six or seven now are going 20% over. Many younger buyers are simply being priced out entirely. He said developers were facing major challenges in delivering housing, such as rising build costs, planning bottlenecks, and labour shortages. Mr Grant added: 'Without targeted intervention to boost output and streamline the development process, house price inflation will persist.' Brokers Ireland, meanwhile, said the outlook for prospective buyers and renters alike was 'bleak', given the shortage of supply. 'The latest Economic and Social Research Institute data forecasting just 33,000 units for 2025 and 37,000 in 2026, well below Government targets, is very worrying,' its deputy chief executive Rachel McGovern said. 'It's hard to envisage how any new housing plan by the Government can turn this around in the short term.' Ms McGovern said a feature of the market in recent times had been ever-growing levels of debt as a consequence of sky-high prices. 'The Central Bank mortgage measures are not, and could never be, sufficient to deal with this situation,' she added. 'Parents are digging very deep into their resources to help first-time buyers to get a foothold in the market.'
BreakingNews.ie
6 days ago
- Business
- BreakingNews.ie
'Outlook bleak' as house price rises show no sign of slowing
The "outlook is bleak" for home buyers as the latest official data showed residential property prices rose at an annual rate of 7.9 per cent in May, up from 7.6 per cent the previous month. The comment from Brokers Ireland came as the Central Statistics Office confirmed that home prices in Dublin rose by 6.9 per cent in May, while those outside the capital jumped 8.7 per cent. Advertisement The median, or midpoint, price of a dwelling purchased in the 12 months to May 2025 was €370,000. The highest median price was €670,000 in Dún Laoghaire-Rathdown, while the lowest median price was €186,000 in Leitrim. The most expensive Eircode area over the period was A94 (Blackrock, Dublin) with a median price of €770,000, while F45 (Castlerea, Roscommon) had the least expensive price of €150,000, the CSO said. Rachel McGovern, deputy chief executive at Brokers Ireland, said the latest figures are bleak for prospective buyers, given the shortage of supply. Ireland Government's housing policies have left it 'tied i... Read More "The latest ESRI data forecasting just 33,000 [new housing] units for 2025 and 37,000 in 2026, well below Government targets, is very worrying. Advertisement "It's hard to envisage how any new housing plan by Government can turn this around in the short-term," she said, adding that it will take "dramatic and unprecedented" measures. Trevor Grant, chairman of the Association of Irish Mortgage Advisors, said prices continue to rise faster than incomes, pushing homeownership further out of reach for many. "With supply still falling well short of demand, this imbalance is not likely to correct itself anytime soon," he said.
Extra.ie
10-07-2025
- Business
- Extra.ie
Good news for buyers as mortgage rates continue to fall
Mortgage interest rates have continued to drop, bringing Ireland closer in line with the European average. According to figures released on Tuesday by the Central Bank, the average Irish mortgage rate is now 3.66%. This marks a decrease from 4.17% in May of last year and brings the Irish average closer to the eurozone's 3.32%. Irish mortgage rates are said to have benefited from falling European Central Bank (ECB) rates. Mortgage interest rates have continued to drop. Pic: Shutterstock These figures come as the number of mortgage approvals has also risen. It is expected the lower rates will make it even easier for first-time buyers to enter the market. The average Irish mortgage rate is now 3.66%. Pic: Getty Images The ECB is expected to maintain the current rates at its next monetary policy meeting on July 24. While the average Irish rate has fallen to 3.66%, it stands at 1.80% in Malta and as high as 4.29% in Latvia. Despite the fall in rates, affordability in the housing market remains a concern. Trevor Grant, chair of the Association of Irish Mortgage Advisors, pointed out that while falling rates are a positive sign, 'borrowers here are still paying more than some of their European counterparts'. Irish mortgage rates are said to have benefited from falling European Central Bank (ECB) rates. Pic: Shutterstock He said: 'One in three first-time buyer homes were valued over €400,000 in 2024, three times the 2019 share… And it has recently been reported that average household incomes for new buyers sits at €85,000, so it's clear that affordability continues to be stretched.' Experts have also raised concerns that, without an adequate increase in housing supply, lowering mortgage rates may mean very little. Fiona McMahon, a senior mortgage adviser from NFP Ireland, warned that 'rate cuts can help with affordability but only to a point. Without significant improvements in housing availability, we risk fuelling more competition for fewer homes which drives up prices and ultimately cancels out the benefit of lower interest rates'.
RTÉ News
11-06-2025
- Business
- RTÉ News
Irish mortgage rates now fifth highest in euro area
Ireland had the fifth highest average interest rate on new mortgage agreements in the euro area in April, new figures from the Central Bank show today. The Central Bank said the weighted average interest rate on new Irish mortgages at the end of April was 3.72%, down five basis points from 3.77% in March and 52 basis points lower than the same time last year. But it compares to the euro area average of 3.34%, which was up a single basis point from the previous month. Latvia had the highest rate at 4.4%, followed by Estonia at 3.98% and Lithuania at 3.81%. Malta had the lowest rate in April at 1.69%. The Central Bank said the total volume of pure new mortgage agreements was unchanged at €904m in April from March, while they were up 30% on an annual basis. Today's figures show that the weighted average interest rate on new fixed rate mortgage agreements - which constitute 81% of the volume of new mortgage agreements - was 3.55% in April, three basis points lower than March and 58 basis points lower than in April 2024. Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.45% in April, three basis points higher than in March and eight basis points lower in annual terms. Commenting on today's figures, Trevor Grant, chairperson of Irish Mortgage Advisors, said that while the average interest rate on new mortgages continue to fall, Ireland is now the fifth most expensive country in the euro zone for mortgages – up from the sixth most expensive ranking it held in March 2025. "The ECB rate cut earlier this month could see average mortgage interest rates continue to fall in Ireland in the coming months, meaning sub-3% mortgage rates could become more widely available in Ireland," Mr Grant said. He noted that earlier this month, Avant Money became the first lender to start offering sub-3% mortgage rates here with rates on its new Flex mortgage product now starting from 2.98%. "This marks the first time mortgage rates have dipped below the 3% threshold since 2022, marking a significant milestone for Irish borrowers. We'd expect more lenders to follow suit, with homeowners and house buyers set to enjoy substantial savings on their mortgages as a result," he added. He said that with the ECB appearing to be adopting a more cautious tone around rate cuts now, mortgage borrowers and would-be house buyers should exercise a certain amount of prudence though. "This month's ECB rate cut was the eighth reduction in a row so interest rates have already fallen substantially over the last year. This means the pace at which the ECB is cutting rates could slow now and the June rate cut could be the last reduction from the ECB for some time. Borrowers should therefore avoid making large financial decisions now based on the hope rates will fall substantially in the future," he added.
Irish Examiner
11-06-2025
- Business
- Irish Examiner
Mortgage rates drop but Ireland remains amongst the most expensive in Europe
The average interest rate on new Irish mortgage loans remains amongst the highest in Europe despite a drop of 52 basis points in the past year. New data from the Central Bank shows the average mortgage rate now stands at 3.72%, down from 3.77% in March. The rate in Ireland exceeds the euro area average by 38 basis points with Ireland climbing one place to fifth in the euro area ahead of Germany, the Netherlands, Greece and Luxembourg. The Central Bank said the average rate on fixed-rate mortgages, which constitute 81% of the volume of new loans, was 3.55% in April, three basis points lower than March 2025 and 58 basis points lower than in April 2024. Trevor Grant, chairperson of the Association of Irish Mortgage Advisors, said Ireland remains expensive for mortgages despite the recent falls, but said there may be hope of average rates dropping below 3%. "The ECB rate cut earlier this month could see average mortgage interest rates continue to fall in Ireland in the coming months, meaning sub-3% mortgage rates could become more widely available in Ireland. Earlier this month, Avant Money became the first lender to start offering sub-3% mortgage rates here," he said. "This marks the first time mortgage rates have dipped below the 3% threshold since 2022, marking a significant milestone for Irish borrowers. We'd expect more lenders to follow suit, with homeowners and house buyers set to enjoy substantial savings on their mortgages as a result." Read More David McNamara: ECB ready to take a pause on rate cuts
