BPFI Housing Market Monitor Report Explained

The Banking & Payments Federation Ireland released their latest Housing Market Monitor report today. It consisted of many different numbers and statistics that will be explained in this blog.

Ireland has consistently seen a large influx of newcomers recently. In the first quarter of 2019, it was reported that the number of housing commencements increased by 31.6% compared to the first quarter of 2018. Additionally, 5,800 housing commencements were registered during that same time period. These numbers are good signs for the Irish people. An increase of new construction will help out with the shortage of houses available and allow for a continually growing economy.

In response to the increase in number of housing projects, one would also expect the number of mortgages given out to increase as well. Mortgage approvals grew 9.2% in the first quarter, while mortgage drawdowns increased by 8.9%. Increase in the number of mortgage approvals can raise some red flags. Mortgage defaults can be deadly for both parties involved, however, with Ireland’s growing economy, defaults should not be an added worry.

The major increases in …

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Mortgage approval rates are surging

The amount of mortgages approvals increased by a third last month. The vast majority was first-time buyers.

With mortgage approval rates increasing, we can expect property prices to keep rising.

The Banking and Payments Federation figures also showed the amount of the approvals is increasing.

A reason for rapid increase could be from Eoghan Murphy, the Housing Minister, reviewing the Help-to-Buy scheme. This review is a result of the Help-to-Buy scheme being accused of inflating house prices.

The increase of approvals does not mean an increase in mortgage drawdowns, as finding a home increases in difficulty. With the housing shortage, houses for sale have multiple offers so you have to outbid the others.

Forecasts predict mortgage lending to go up from €5.7 billion last year to €7.5 billion this year. Within the next three years it might even reach €13 billion.

Mortgage approvals were up from 3,046 last May to 4,124 this May. That makes a 35 percent increase in a year.

We can expect to see an increase of competition among mortgage lending banks with lower interest rates or …

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Mortgage approvals up 45% in May

Data released by the Banking and Payments Federation Ireland revealed that mortgage approvals have gone up 35% May of this year in comparison to May of 2016.

 

There were a total of 4,124 mortgages approved in May, with a combined value of €884 million. This represents an increase of 1,078 mortgages and a €275 value compared to May of 2016.

 

This increase in mortgage approvals is likely caused by lower interest rates and by greater general confidence in the economy. It also represents a continuously growing demand in the housing market, and a supply that is slowly but surely catching up.

 

First time buyer mortgage approvals in particular are up 45.8%, the value of such mortgages also saw an even more dramatic increase of 60.7% compared to May of last year. This indicates growing confidence on the part of borrowers. First time buyers are purchasing more expensive housing and are seeing housing prices rise.

 

It is …

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Mortgage approvals

Analysing figures released by the Banking and Payments Federation, the article sends a somewhat contradictory message. On the one hand, first time buyer mortgage approval volumes increased 19% this April compared to April of 2016. However, this volume also represents a 8.4% drop from the number of mortgages approved last month in March.

The decrease in the number of first time buyer mortgages this month is not indicative of the generally increasing annual trend, and may be due to the lack of buyer discounts offered in the month of April, when there isn’t many major holidays or events. April is generally the worst time of the year to finance a house (Business Insider).

On a larger scale, the trend in approval volumes for all mortgages follows that of first time buyer mortgages, but to a less exaggerated extent. The number in April represents an increase of 11.7% compared to April of 2016, and a decrease of 11.6% compared to March of this year.

The greater increase in first time buyer mortgages as compared to all mortgages could indicate that more …

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Mortgage approvals up, lending figures down.

According to the IBF mortgage approvals report the numbers for April are up significantly, the figures stated that mortgage approvals are up 22.8% in a month on month basis and that it is primarily for the purchase of a house. This comes shortly after showing that in the first quarter of the year that mortgage lending is down year on year.

The activity being focused on first home buyers and movers (all looking for non apartment stock in the main) has already been well flagged on this blog.

In year on year terms this April is also up 8.7% on April 2012. A total of 1,433 mortgages to a value of €240m were approved by lenders here during the month of April. The next big question is whether or not they draw down, we have been watching this happen for a while, un-requisitioned loan facilities are common.

Another thing happening is that we are already seeing that the idea of doubling credit this year is unlikely, despite claims from the banks. If 2012 was a wash out then …

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