Mortgage lending has grown 39 per cent to €1.4bn in the first three months of 2017 compared to the same period in 2016.
Mortgage lending for house purchase equalled €1.2bn, up 37pc from the €888m recorded in the first three months of 2016 according to data released by the Banking and Payments Federation.
First-time buyers account for 56pc of the market.
The lending numbers suggest that mortgages now finance 50-55pc of residential transactions.
The growth in mortgage lending was driven by a 9pc rise in the average loan to €208k and a 26pc rise in volumes.
Lending for house purchase has equalled €5.3bn over the past 12 months, versus €5bn in 2016. Including top-ups and re-mortgaging the total market was up €1.4bn in the first three months of 2017 and €6bn in the past 12 months.
In total there were €783m worth of mortgage approvals in March this year, up a massive 103pc on the period last year. The approvals figure for March is the highest since the series began in 2010.
While the news is good for those looking to take out a mortgage, both house prices and rents are continuing to rise.
Meanwhile, the number of homes changing hands has plummeted by as much as 17pc in areas with acute housing shortages due to the lack of new supply coming on to the market, an analysis of the Property Price Register has shown.
The data is the latest in a series of indicators suggesting that activity in Ireland’s housing market is accelerating.
In April it was reported that Bank of Ireland’s new mortgage lending recorded a 30pc increase in the first three months of the year versus the same period in 2016.