19pc jump in mortgage approvals
There has been a sharp rise in the number of first-time buyers being approved for a mortgage.
New figures show that there was a 19pc rise in the number of new buyers getting the go-ahead to borrow to buy a home in April compared with the same month last year.
Some 1,819 potential first-time buyers were cleared to take on a mortgage in April, according to figures from the Banking and Payments Federation Ireland.
More than half of all mortgage approvals were for first-time buyers. A total of 3,340 mortgages were approved in April, up 12pc on a year ago.
The value of mortgages approved in April was €685m, up by almost 20pc in a year.
But the value of mortgages that were approved fell by 12.5pc when April is compared with the previous month.
The average mortgage approved dropped slightly on the month from €207,100 in March to €205,100 in April.
For first-time buyers, the average approval was €201,100. This is up almost 6pc on the year but down from €205,600 in March.
For mover-purchasers, the average approval was €236,600, up almost 9pc on the year.
People approved for a mortgage do not always end up drawing down the loan as they often get outbid on properties.
Analysts said mortgage drawdowns are on track to surge by 25pc in value this year to €7bn.
Davy Stockbrokers economist Conall Mac Coille said indicators point to a housing market starved of supply, with property prices rising rapidly.