Ireland’s property and mortgage market recap for July 2022 🇮🇪

Hello everyone, John Coleman here, Ireland’s mortgage broker with your property and mortgage market recap for July 2022. 🇮🇪

I hope everyone is having a good bank holiday.

We saw a lot of changes in July, as the Central Bank increased interest rates as expected.

The central bank raised rates for the first time in nearly ten years, raising them from zero percent to half a percent. That did create a little stir since they had signaled a quarter-point increase but only days before there were rumors of a three-quarter-point increase.

In the end, they settled on raising interest rates by half a percent, which is where we’re at now.

Of course, this was done to try to dampen inflation, which is raging on across Europe.

How quickly that will happen and to what agree inflation will come under control remains to be seen, but the Central Bank will look at the data for direction on future rate increases.

So, we’ll keep a close eye on this and update you next month, too.

So, what impact will that have on our property market?

In my personal view, we’ll see a reduction in the rate of price increase.

Some people will inevitably pause or stall their big home buying decision, while others may be waiting for prices to come down before buying. And still others may see the gap between the cost to rent or buy getting closer so their motivation wanes.

But please note that a slowdown in the rate of price increases is not the same thing as prices going down.

Frankly, I don’t see prices falling.

The gap between supply and demand is still so big that I don’t think we’ll see prices go negative at least in the next 18 months – just a slowdown in price increases

Now, the big question: Would I buy a property myself right now?

If I’m looking at the long-term, say a 10–15-year window, then the answer is yes, definitely. It won’t impact me either way if prices go up or down in the next few years.

But if I was betting only on the short-term, like the next five years, I might be a little more cautious and really look at the numbers and my finances.

I also do have a helpful announcement, the commencement of a new shared ownership scheme.

It’s aimed to help first time buyers bridge the gap between the deposit, mortgage, and cost of the property.
This scheme will allow some buyers to obtain up to 30% of cost price – but there are lots of details and requirements so contact me directly to hear more (and I’ll create a separate video on this).

Lastly, my favorite topic: banks and service.
Unfortunately, bank service has gone backwards – it now takes up to three weeks to give an approval and 3-5 weeks for some transactions. I am optimistic that this lull in service is only temporary, as the banks were inundated with applications before rates went up and also short-staffed during the summer months.

Well, that’s it for your July 2022 Ireland property and mortgage recap!

As always, I’m here to answer all of your questions and help you any way I can, including finding you the very best mortgage options out there.

Contact me any time to talk! In service,

-John Coleman

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