Property market booming as high demand met with limited supply
Mid Ulster is experiencing a post lockdown property boom - with the average price of a house up by 15 per cent, the largest increase anywhere in the province.
According to the latest Quarterly House Price Index report the market continues to “exhibit increased trading up activity and price acceleration thanks to strong levels of market demand coupled with supply inelasticity”.
For Mid Ulster that tranlsates to plain terms as high demand with limited supply.
In financial terms it has seen the average property price in Mid Ulster rise by almost £26,000 from the previous quarter.
According to the report the average property in Mid Ulster cost £198,378 in the period April to June, compared to £172,470 in the previous three months (January to March).
The Ulster University research, which has been produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society, analyses the performance of the Northern Ireland housing market during the second quarter of 2021 (April, May and June).
The report reveals an overall average house price of £195,242 for Northern Ireland as a whole which represents a weighted annual level of growth of 9.2% between Q2 2020 and Q2 2021.
Where quarterly movements are concerned, the Index displays an increase of 2.8% relative to Q1 2021. This growth remains driven by increased activity, particularly within the semi-detached and detached segments of the market across the region but also as a result of more nuanced increases within the terrace/townhouse and apartment sectors, which have witnessed a rejuvenation in transaction prices.
The report is premised upon 4,138 transactions, the highest volume of transactions recorded in the index in almost two decades, and substantially higher than the 2,829 reported in Q1, 2021 and the 570 presented in Q2 2020 due to the market closure.
The sense of positivity which has encapsulated the NI Housing market post the enforced pandemic closure continued throughout the three months to the end of June 2021.
The report’s estate agent survey reaffirms the sense of optimism, with over 70% of agents citing heightened transaction volumes relative to Q1 2021 and 74% reporting heightened levels of enquiries from prospective purchasers. Importantly, more than 80% of the agents surveyed confirmed that increased viewing levels over the quarter had prompted a further increase in the number of properties achieving sale agreed status relative to the previous quarter.
The majority of agents expect market buoyancy to continue through into next quarter as the demand/supply imbalance continues in the market.
Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by Coronavirus impacts our advertisers.
Please consider purchasing a copy of the paper. You can also support trusted, fact-checked journalism by taking out a digital subscription of the News Letter.