Increase In Number Of NI House Sales

The number of house sales in Northern Ireland increased by more than 20% between the second and third quarter of this year, the University of Ulster (UU) has reported.

According to the latest University of Ulster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, the number of transactions recorded by the survey in July, August and September was 1,706. It is the largest sample size in the survey since the peak of the housing market in the region since 2007.

The report also said that while the overall average price of residential property in the third quarter - £129,777 - was similar to the previous quarter, the improving volume of sales was a positive sign that the housing market is recovering.

When variations in the sample mix were allowed for, the overall average price of a house showed a weighted increase of 1.3% over the quarter, but was still down 4.8% over a year.

Professor Alastair Adair, Dr John McCord, Professor Stanley McGreal and Dr David McIlhatton, the authors of the report, said: "The sharp quarterly rise in the number of transactions is a major step forward for the local housing market. Coupled with a weighted quarterly price increase of 1.3%, it presents an optimistic picture of future prospects."

Elsewhere, the report claimed there was "a highly affordable price structure" in the Northern Ireland market, with a proportion of properties in the survey selling at or below £100,000 rising in the third quarter to 44%.

Overall, almost three quarters of homes in the sample sold at or below £150,000.

At regional level within Northern Ireland, price trends remain variable, often because of the limited sample size in previous surveys. Lisburn remained the highest priced area in NI with an average of £173,224, while North Belfast was the least expensive with an average of £85,756.

"This should provide potential first-time buyers with confidence that there is a range of affordable housing in Northern Ireland.

"The price profile supports comments from the estate agency sector about the stabilisation of prices and growth in the number of transactions over the year," the report added.

Alan Bridle, UK Economist at Bank of Ireland UK, commented: "With house sellers adjusting their price expectations downwards, we are seeing houses selling again in greater numbers at these reduced prices, with the lower end of the market particularly active.

"The more favourable economic outlook, allied to UK government measures to stimulate the housing market, is likely to support greater activity into 2014. However, the conditions for a broader-based and more buoyant recovery in Northern Ireland are not yet in place."

(JP/CD)