House prices increasing in Northern Ireland
Posted on 23 March 2017
Latest figures on house prices in Northern Ireland have shown that the average cost of a property here is now £125,000. This figure is up 5.7% on the same time last year.
The average house price in Northern Ireland is still well behind that in the rest of the UK where the average property costs £218,000.
The published figures on the increase in prices here certainly reflects what McGuinness Fleck have seen here as estate agents in Belfast, but the market is still not operating as efficiently as it could be.
The increase in prices is largely down to a restricted supply rather than positive sentiment from buyers. The figures bear this out with 5,081 house sales in Northern Ireland at the end of last year compared to 6,163 for the same time the previous year: a figure still well down on what we would expect.
The lack of positivity from buyers is down to economic uncertainty. Brexit, the election in the USA and austerity measures, many of which have yet to be implemented and most of which have not really started to bite, are putting people off committing to buying a house.
It is this same uncertainty which is restricting supply. Unsure of the future, property owners are deciding not to put their house on the market to move up the ladder, but rather ‘sit tight’ and wait to see how things develop economically.
The low cost of borrowing is also contributing to the recent increase in house prices in Northern Ireland.
The housing market works best when it is fluid, allowing people to move as their circumstances change. Currently, prices are being pushed upwards by a lack of supply, but demand remains only moderate.
A higher rate of both supply and demand, coupled with a more moderate rate of price growth would be more preferable.
With a lengthy Brexit process due to be triggered imminently, it is likely that the economic uncertainty is set to continue and this will probably be reflected in the housing market here in Northern Ireland.
If you are interested in finding out more about selling with McGuinness Fleck, or would like to request our free PDF guide to preparing your property for sale, please follow the link below or contact Seamus McFlynn.