32% of the adult population said they were at least contemplating buying a residential property in the next 24 months as pent-up demand re-emerges, a new survey shows.
The KBC Bank Ireland's Home Buyer survey was carried out by Ignite Research last month.
It is intended to build a sentiment index specific to home-buying along the lines of the broader consumer sentiment index prepared by the bank and the ESRI.
Today's survey shows that of those now considering buying a house, 49% felt it was a good time to buy a home with only 14% believing it was a bad time to buy while 37% were undecided.
When questioned about the impact new Central Bank mortgage lending measures would have on their plans, of those who were aware of the rules, 44% said the measures would have no impact at all.
Another 27% said they would have to save for longer, 23% said they would have to change the type of home they were looking for while 14% said they would need extra support from parents or other borrowings.
Of those needing to save for longer, almost four out of 10 said they would have to save for another 12-24 months, with 28% having to save for two to three years or more.
The average saving time for a deposit is around two years.
KBC Bank Ireland said that those planning on buying a home were more upbeat about their own finances than the general public.
47% stated that they are positive about their finances for the year ahead compared to 30% of responses to a similar question in the latest KBC Consumer Sentiment Index earlier this month.
But potential home-buyers are also cautious about a very unpredictable economic environment.
A third said that uncertainty around the Brexit vote in the UK has made them less likely to buy in the next 12 months. About one in five also said they could see themselves changing their plans if Central Bank lending limits were to change.
The new survey found many people are looking for a long term home rather than a foot on the property ladder, with more than a third (35%) planning to stay in the property over 20 years and just 11% less than five years.
Commenting on the survey, KBC Bank Ireland's chief economist said that one surprising result of the survey is the substantial number of respondents considering purchasing alone, with 48% stating they intend to buy on their own and 52% with someone else.
"This is partly an age story with younger and older age groups more inclined to purchase on their own but it also hints at lifestyle changes in Irish society," Austin Hughes added.
Mr Hughes also said many of the responses in the survey suggest that prospective homebuyers are carefully looking before they leap.
"Weaker economic conditions are the most common reason that might cause some to pause rather than purchase and a slightly smaller number would delay if they felt choice was likely to increase markedly," the economist stated.
"A somewhat smaller number could be influenced by more affordable rents, an outcome that suggests the question of whether to rent or buy isn’t the major decision facing would-be purchasers," he added.
