Posted on Wednesday 20 August 2014 by Ulster Business
While house prices have climbed, they are still 49% below the 2007 peak
The housing market in Northern Ireland has witnessed a jump in both prices and activity in the last year, according to new government data.
The Land and Property Services’ Residential Property Price Index - which uses stamp duty information – said house prices were 10% higher in the second quarter of 2014 compared to the same time last year.
It also showed that transactions climbed by 25% during that time, with 4,800 houses changing hands in the three months to the end of June.
Terraced houses have performed particularly well with the average price now standing at £71,872, a 12% hike on last year.
Semi-detached houses climbed by 9% over the last 12 months to £104,927, apartments by 8% to £83,987 and detached houses by 4% to £162,426.
The recovery has also taken place at a different pace across Northern Ireland.
The best performing region in the second quarter was outer Belfast where prices climbed 12% to an average £121,505.
It was followed by Belfast city which was up 10% at £98,120, the east of Northern Ireland up 9% at £103,536, the west and south of Northern Ireland up 7% at £100,339 and the northern of Northern Ireland which was up 5% at £97,665.
While the recovery has helped what had been a beleaguered market, prices still have some way to go.
The average price of all properties at present stands at £105,894, a figure which is 49% below the peak reached in the third quarter of 2007.
Finance minister Simon Hamilton welcomed the news.
“Today’s report shows further encouraging signs that the housing market in NI is a much more normalised picture. This is particularly good news for first time purchasers and those who are seeking to move up and secure value for money in a much more stable market.”