In the third quarter, the average residential mortgage loan stood at €308,200, marking a 7 per cent increase year-on-year. By October, the average mortgage approval had reached a new high of €321,000, up 8 per cent compared to the previous year.

The report also highlighted rising property prices. In the fourth quarter, the median asking price for homes listed on MyHome was €365,000, an 8.4 per cent increase from the previous year. In Dublin, the median asking price was €450,000, up 5.9 per cent annually, representing the slowest rate of price inflation in the capital over the past year.

Among Dublin’s surrounding counties, Kildare recorded a median asking price of €310,000, reflecting a 10.7 per cent increase. Meath saw a more modest rise of 1.7 per cent, bringing its median price to €300,000, while prices in Wicklow remained unchanged at €395,000.

Outside of the Dublin region, property price inflation reached 9.8 per cent, the highest level in two and a half years.

The report also noted that properties were selling for an average of 7.4 per cent above their original asking price, setting a new record. In Dublin, the median transaction price was 8.6 per cent above the asking price.

For first-time buyers, the average purchase price in the first half of the year was €375,000—an increase of €21,000 or 6 per cent. Of this rise, €7,300 was attributed to larger deposits, according to Bank of Ireland’s chief economist, Conall MacCoille, who authored the report.

MacCoille also highlighted that the average age of first-time buyers rose to 36 in the first half of 2024, up from 34 in 2020, making them two years older than their UK counterparts. On average, these buyers allocate 28 per cent of their post-tax disposable income to mortgage repayments, though MacCoille anticipates this figure will drop to 25 per cent or lower as the European Central Bank introduces rate cuts.

Looking ahead, MacCoille forecasts a 4 per cent rise in average property prices. He expects housing completions to increase from 33,000 last year to 42,000 in 2025, with a further rise to 46,000 in 2026.

Despite stretched affordability, he noted that property prices have maintained momentum. “Demand remains intense and has strengthened throughout the year, particularly in the first-time buyer segment, driven by rising mortgage approval values,” he said.

Supply remains a challenge, with only 11,500 listings on MyHome in December. The competition for available homes has pushed the average time to complete a sale to a record low of three months.

Joanne Geary, managing director of MyHome.ie, emphasized the urgency of increasing housing supply. “Any stock that has come onto the market has been quickly snapped up, bringing us close to a historic low in terms of the average time to sale agreed,” she said.

She pointed to housing completions as a key metric to watch in the coming years. “Our forecast of 33,000 completions for 2024 is on track, with expectations of 42,000 in 2025 and 45,000 in 2026. However, a steady increase in supply is essential to meet surging demand.”