Hello everyone, John Coleman here, Ireland’s mortgage broker with your property and mortgage market recap of June 2023. 🇮🇪
In this video I take a look back at the first six months of 2023, as well as his predictions and analysis for what’s to come in the final six months of the year.
Of course, the big news is that Interest rates keep going up, starting with the back end of 2022. Most recently, we’ve had another rate increase in the middle of June by one-quarter percent.
The expectation is for possible one or two more rate increases during the second half of 2023, although it will probably be by a quarter percent – not as drastic as previously.
You would expect this rise in interest rate to bring down buyer demand, but that hasn’t happened.
In fact, a report I see this week shows that year-on-year demand is up 17% in 2023 (based on the number of bank approvals), and demand spiked by 11% in the first five months of the year alone!
One thing to keep in mind when we talk about rates is that historically, rates are very normal right now. But, of course, it’s a bit of a shock to buyers and homeowners who are used to record-low rates in years past.
For the moment, prices are not going down. Clients are still telling me about bidding wars and a hot property market. It’s definitely a seller’s market!
Turning to bank service, I’m sorry to report that it’s still not where it should be. Yes, it has gotten slightly better, but still not at an acceptable timeline.
I do believe that technology will push improvements in bank service over the next 8-12 months, but until then we just have to deal with it the best possible.
One other important point I’d like to make is about second jobs.
A number of my clients recently have had second jobs, assuming that would help them qualify for a mortgage.
But does that really work in your favor?
Not at all. In fact, the banks aren’t taking the income into account.
Remember that the banks give you a mortgage based on you proving their ability to repay, which is done through rent and savings.
But if savings is coming from a second job, the bank will outright dismiss that income or savings.
So, be very careful with your second job and savings. I can advise you how to structure your income and savings to give you the best change of qualifying for the mortgage you need.
Feel free to ask me any time!
And let’s hope the next six months of 2023 are great. Thanks again for your trust, patronage, and friendship!