The number of mortgages being approved has increased by more than 36% in the past 6 months. That is according to the latest figures from the Irish Banking Federation (IBF).
The Housing Market Monitor also shows the number of homes listed in the 1st quarter of this year has dropped 15% with a significant shortage of family homes available to buy in Dublin.
It shows that while the number of properties listed for sale fell, there were 14% more property transactions over the same period. The report adds that this is the 6th consecutive quarter of year-on-year growth in the volume of transactions.
However property prices continue to show signs of stabilisation with the national change in prices being -3% in Q1 2013 compared to the same quarter in 2012. While Dublin property prices have seen their first year-on-year gain since 2007, with prices 1.4% higher than a year ago.
The document concludes that the mortgage market experienced a 'hangover' in the first months of 2013 from the ending of mortgage interest relief at the end of 2012.
Goodbody Chief Economist is Dermot O'Leary. He says that has caused house prices to increase in the capital for the first time since 2007.
He says a renewed focus on lending by the main banks is partially responsible for the rise in mortgages approved.
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