Posted on Thursday 11 August 2016 by Ulster Business
The average price of a house in Northern Ireland has risen by 12.2% in the last year, according to new research from Ulster University, with most of the increase coming in the last quarter of the year.
Its Quarterly House Price Index Report pegged the average price of a house here at £155,528 at the end of June and revealed that the bulk of that increase - 8.8% - occurred in the preceding three months.
The latter move goes against other evidence which suggested uncertainty surrounding the EU Referendum, which took place on June 23, had kept a lid on the housing market.
Prices are now at the highest level since June 2010, although still some way off the peak reached before the credit crunch in 2007.
In terms of property type, terraced and townhouses performed most strongly over the year, climbing 27.3% to an average of £102,197, closely followed by apartments which jumped 18.9% to £125,145 and semi-detached houses which were up 14.3% at £149,153.
When it comes to region, prices in Belfast were up 11.1%, in North Down they were up 7.9%, in Lisburn up 7.8%, in Antrim/Ballymena up 20.2%, in Coleraine/Limavady/North Coast up 1.8%, the West up by 5.2%, Enniskillen/Fermanagh/South Tyrone up 6.8%, Craigavon up 13.2%, Armagh up 10.4%, Mid & South Down up by 9.6%.
But not all regions performed as well with prices in East Antrim falling by 1.2% and in Derry/Strabane they were down by 5.5%,
The survey said the percentage of properties sold at or below £100,000 has dropped from 32% to 26% on a quarter-by-quarter basis, a result, the report said of higher demand from first time buyers.
Lead researcher, Professor Stanley McGreal from Ulster University said the mood is buoyant but Brexit may dent sentiment.
“The research is developed with support from estate agents across Northern Ireland, and most paint an optimistic picture about the market. However, a number of agents expressed concern that the increased uncertainty stemming from the EU referendum may impact on the market over the coming quarters if purchase decisions are delayed.
But there are positives to take from the fallout from the EU Referendum vote.
“At the same time low interest rates are reducing the cost of mortgage repayments, which is making the property market more attractive.”
Joe Frey, the Housing Executive's Head of Research, said Brexit won’t be a big influence on Northern Ireland.
“There may well be a downturn in the UK’s housing market as a whole over the next year, partly as a result of the Brexit vote, but given the sustainable rate of price increases in recent times in Northern Ireland, it is unlikely to impact significantly on the local market.”
Location Average Price
Quarter 2 2016
Northern Ireland - All £158,528
North Belfast £104,620
South Belfast £217,948
East Belfast £187,027
West Belfast £120,859
North Down £192,156
East Antrim £119,369
Antrim Ballymena £138,025
Coleraine/Limavady/North Coast £148,962
Mid Ulster £140,298
Mid and South Down £147,327