| The housing crash, which has seen prices fall by more than a third in just 18 months, is over. New figures from the University of Ulster (UU) show that average prices increased in the second quarter of this year - albeit by a very modest 0.5 per cent - and the number of houses sold rose.
An increase in both sales transactions and quarterly price trends in some sectors is evidence of a stabilising market, according to the latest University of Ulster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive.
There was negligible change (0.5%) to the average cost of a house in the second quarter of 2009 at £158,886. This is a significantly lower rate of decline than the 10.8% experienced in the first quarter of 2009 with clear indications that the market is turning.
The volume of housing transactions – a key indicator of recovery – in April, May and June was 950 recorded deals. This figure is low relative to normal market conditions but it represents a significant increase compared to recent surveys; 692 in quarter one of 2009 and 704 in the final quarter of 2008.
According to the report, anecdotal evidence from several estate agents of inquiries picking-up earlier this year is now being translated into sales. Some impact on price is expected as buyers capitalise on lower sales prices.
The survey is the most broadly-based and authoritative of all those undertaken in Northern Ireland. It covers about 120 estate agents and records all open-market transactions, not just those involving mortgage lenders.
The authors of the report, Prof Alastair Adair, Prof Stanley McGreal and Mrs Louise Brown, said: “This survey provides the first tangible evidence that the housing market is starting the process of recovery - transactions, although still below normal market conditions are up, the rate of price decline is reducing and growth has occurred in some market sectors during the second quarter of 2009".
The economist Alan Bridle, Head of Research at Bank of Ireland Northern Ireland, said: "This latest survey provides some encouragement that the two year-old housing recession in Northern Ireland may be coming to an end with evidence of both price stability and an increasing level of activity in the last three months. The results also chime strongly with the improving sentiment being reflected in various UK-wide readings of the residential market, qualified of course by recognition of the severity of this particular downturn."
Information taken from Irish News & University of Ulster |
