Davy raises mortgage lending forecast as home listings rise

Home listings rise by 12% compared to same period in 2019

Davy stockbrokers raised its forecast for mortgage lending in the Republic as home listings in Dublin rose by 12 per cent last week compared to the same week in 2019.

Davy economist Conall Mac Coille wrote in a note that mortgage lending this year will likely total about €7 billion, up from the company’s previous estimate of €5.2 billion, “on the back of stronger transactions and evidence that activity in the housing market held up better than expected” in the second quarter of this year.

Data from Myhome.ie shows that new listings in the week to July 12th rose 1 per cent to 1,138 on 2019. In Dublin, there were 401 listings, a 12 per cent rise on the previous year.

Davy also reported that activity from prospective homebuyers on the Myhome website rose 40 to 45 per cent on 2019.

Still, data from property website Daft.ie last week showed that the price of a home in June was 3.3 per cent lower than in the some month a year ago with the average listed sale price across the State of €253,868.

Earlier this month, property agent Sherry Fitzgerald noted that there were 5,000 fewer homes available for sale at the beginning of June than at the same time last year, a 22 per cent fall, as sellers delayed in bringing their homes to market due to the Covid-19 lockdown of the economy.

The estate agent said there was a reduction of 69 per cent, or about 10,000 homes, for sale across March, April and May.

Peter Hamilton

Peter Hamilton

Peter Hamilton is a contributor to The Irish Times specialising in business