Ireland’s property and mortgage market recap for May 2023 🇮🇪

Ireland’s property and mortgage market recap for May 2023 🇮🇪

Hello everyone, John Coleman here, Ireland’s mortgage broker with your property and mortgage market recap of May 2023. 🇮🇪

I hope everyone enjoyed their bank holiday as we’re already well into June. And now, let’s take a look at how the mortgage and property market performed in Ireland in May.

We’ll start by looking at rates, as they are due to to go up this month.
I think they’ll rise at least once more this month and then maybe once again and then we’ll probably be at the end of the rate increase cycle.

Interestingly, one of Ireland’s banks is now offering a fixed-term mortgage for the whole term of the loan.

While this wouldn’t be for me – I think it’s important to review your mortgage every 3-54 years, it may be an option for people who are risk adverse. Incredibly, the bank actually lowered their rates for this fixed term mortgage, while their short-term rates are higher. So, give me a call if you have questions or want to review that option.

Looking at buyer demand, you would think that our increasing rates would affect buyer demand in Ireland, but I personally have not yet seen that.

In fact, my applications are inquiries are way up this year, and there’s evidence that’s indicative of the entire market. A recent report compared buyer inquiries last month to a year ago and found that they’re up 122% this year!

The greatest segment of the market with increased demand is new properties, with the Help to Buy Scheme having an effect on that of course.

Looking at anecdotal evidence of our hot market, I’ve had several buyers tell me that they’re getting into bidding wars on properties!

However, with rates going up, I do see banks reducing the amount they lend to buyers, so that will eventually have an impact on demand.

Now turning to bank service, I can honestly say that I’ve seen a slight improvement recently. The banks are also currently working on systems to take applications directly from brokers to make things smoother and faster.

Amazingly, I found out that out of the 16 mortgage brokers they get business from, only three of those brokers are using systems to submit applications!

That’s shocking to me because I’m always focused on improving my systems, making the customer journey and experience as easy and enjoyable as possible.

So, if you ever have suggestions how I can improve my business or your customer experience, please let me know!

Until then, have a great June and we’ll talk next month.

As always, please contact me if you have any questions about obtaining a mortgage or buying property here in Ireland. I’m happy to help!

-John Coleman,
JC Mortgages

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