Affordability continues to improve for first time buyers in the residential market the latest edition of the EBS/DKM Affordability Index shows. By the end of this year mortgage repayments, as a percentage of disposable income, will have fallen by 43%.
Only 13% of a first time buyer couples’ disposable income is required to … meet their mortgage repayments (16% in Dublin). This is down from 26.4% (32.5%) and the end of 2006.
In addition developers in Ireland are now reporting that prices in the new homes sector are at, or are at least close to the bottom and many units are being sold below cost.
With low prices, a surplus of available stock, low interest rates and the best affordability for years, is there now a potential window opening up in the market for first timers to consider purchasing in?
Or is there simply too much uncertainty around for people to commit just yet?
Where does the balance between uncertainty and opportunity really lie?
With economic recovery now establishing itself in the euro zone we can be sure that the ECB will eventually have to consider raising interest rates and potentially sooner than many would think, and almost certainly sooner than is likely to suit the domestic Irish economy, and that will lead to the window of opportunity starting to close.