In the second quarter of this year, Northern Ireland experienced a 10% surge in house sales, marking the most vigorous activity noted in over two years. The Northern Ireland Quarterly House Price Index Report reveals that there were 3,304 transactions during this period.
The average house price increased by 2.5% reaching £211,225 (€246,865), the highest it’s been since the same quarter in 2008. Compared to the previous quarter, this represents a 2.6% increase and an annual increase of 2.5%.
Newly constructed properties made up 14% of the transactions, which is slightly more than recent reports but still lower than the long-standing trend of 20-25%. The average price of these new builds was £265,299, exceeding the total market average.
The report mentions that the construction sector’s resource scarcity and inflationary pressures have moderately alleviated. However, there still exists a skills shortage and uncertainty over future job programs, which continue to restrict the completion of new builds and the availability of high-quality housing.
Dr Michael McCord, the leading researcher from Ulster University, suggests that there has been an upward movement in the housing market as interest rates have become more stable. He sees the quarter launching increased consumer confidence demonstrated by elevated transaction levels, listings, and continued growth in house prices. He expects this growth to persist for the rest of 2024 due to the restraints in the supply chain and a decrease in new build activity hindering the market.
Ursula McAnulty, the head of research at the Housing Executive which ordered the analysis, sees this report as proof of continuing stability within the housing market. She believes the trend of stable growth in house prices will persist. Both expectations based on over 60% of agents anticipating house price growth into the second half of 2024 and over 70% reporting increased consumer confidence in their market areas. Agents cited continued supply issues as one of the significant factors driving steady house price growth in combination with ongoing demand.