There was a 10 per cent increase in the number of houses sold in Northern Ireland in the second quarter of this year compared to the previous three months as activity reached its highest level in more than two years.
The latest Northern Ireland Quarterly House Price Index Report shows there were 3,304 transactions over the period.
The average house price rose 2.5 per cent to £211,225 (€246,865), which was the highest since the same quarter in 2008. That figure represented a 2.6 per cent increase from the previous quarter and a 2.5 per cent increase year on year.
[ UK house prices ‘remain subdued’ for third successive monthOpens in new window ]
New-build properties constituted 14 per cent of transactions, which was higher than most recent reports, but it remains below the long-term trend of 20-25 per cent. The average new-build price was £265,299, which was higher than the overall market average.
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The report said material shortages and inflationary pressures within the construction sector had “eased to a moderate level”.
However, skills shortages and uncertainty about future work programmes “continue to hinder new-build completions and limit the availability of quality housing stock”.
Lead researcher Dr Michael McCord of Ulster University said the period saw “increasing momentum within the housing market as interest rates have stabilised”.
“This more benign macroeconomic setting has seen heightened consumer confidence within the housing market depicted by elevated transaction levels, listings and continued house price growth evident throughout the quarter,” he said.
[ House prices climbed almost 3% in Northern Ireland in fourth quarterOpens in new window ]
“This house price growth looks to continue over the remainder of 2024 as supply constraints and a reduction in new-build activity continues to impact on market activity.”
Ursula McAnulty, head of research at the Housing Executive, which commissioned the analysis, said the report indicated “continuing stability” within the housing market.
“There are signals that this steady house price growth will continue,” she said. “Over 60 per cent of agents expected continued house price growth moving into the second half of 2024 and over 70 per cent of agents report improved consumer confidence in their market area.
“Once again, the continuing supply constraints was flagged by agents and, coupled with the ongoing demand, all point to steady upward growth of house prices.”
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