Housing Market Shows Signs Of Recovery

The Quarterly House Price Index for the second quarter of 2013 has been released.

The report found that the volume of sales has been sustained at a reasonable level for the second consecutive quarter which suggests a tentative improvement in the Northern Ireland housing market.

The report produced in partnership with the University of Ulster and Bank of Ireland shows an overall average price of a house in the second quarter – April, May and June – was £130,864, virtually unchanged from the previous quarter (£131,128).

However, when taking into account the mix of housing types covered in the survey, the report recorded a weighted decline of 7.6% over the year.

The survey covered 1,409 open market transactions from a network of estate agents, a sample size which is highly comparable to that of the first quarter, suggesting a certain momentum in the housing market.


The report cautioned that performance across Northern Ireland remained vulnerable to negative events and news.

The authors of the report - Professor Alastair Adair, Dr John McCord, Professor Stanley McGreal and Dr David McIlhatton said: "The sustained improvement in the volume of transactions in the survey indicates momentum in the market and although the overall average price is virtually unchanged over the quarter, the stabilisation of price levels has - according to estate agents - led to an increase in first-time buyer activity."

With a significant percentage of properties within the lower price bands, the report notes the affordable price structure of housing in Northern Ireland. Nearly three quarters of the total sample (74%) sold at or below £150,000 while 41% of properties sold at or below £100,000. The authors say these lower price bands are important in providing potential first-time buyers with a range of affordable housing.

Alan Bridle, UK Economist at Bank of Ireland UK, said: "Six years on from the peak of the price boom, there is encouragement in this survey with the pick-up in sales and average prices largely unchanged. The more positive trends from the mortgage and labour markets of late should be supportive of steady, if unspectacular progress for the rest of 2013 and into 2014, notwithstanding continued variable performance in local markets."

(CD/JP)