Limavady housing market 'volatile' after ten per cent dip

Figures released from the University of Ulster Quarterly House Price Index have shown the overall average price of a house in the area at the start of 2010 to be in the region of 155,343; down over a year by 8.7%. The research refers to the housing market in the Limavady, Coleraine and North Coast areas as remaining in a "volatile" state, with all sectors of the market, except detached houses, "falling back". The figures go against the over all housing market statistics for the province which showed a "modest" increase in house value in Northern Ireland. The latest report, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, recorded an annual weighted rate of price growth of 4.9% but stated that any recovery in the market "remains tentative".

Authors of the comprehensive study, Professor Alastair Adair, Professor Stanley McGreal and David McIlhatton, say the research has shown that at present recovery is differing across the regions.

"The latest data highlights the tentative recovery of the housing market, with a weighted rate of price growth over a year of 4.9%.

"However, the findings suggest that recovery is patchy and varies across different property types and areas of Northern Ireland. The pace of growth is likely to be impacted by macroeconomic conditions and the steps that the new government takes to reduce the public deficit."

The authors said the smaller sample size in the first quarter was caused by continuing difficulties in the market, the cold winter and the change in stamp duty which produced a flurry of sales in the final quarter of last year. The overall average price of a house in Northern Ireland for the first quarter of this year was 169,497 compared to 161,429 in the final quarter of 2009. The report uses a weighted index to even out the fluctuations in sample composition and this showed an annual growth rate of 4.9% in the first quarter of this year in stark contrast to an annual decline of 35% recorded in the first quarter of 2009.

The economist Alan Bridle, Head of Economics and Research at Bank of Ireland Northern Ireland, said recovery for west remained "challenging."

"Eastern areas such as Belfast and North Down seem to be seeing some signs of recovery but the picture for Mid Ulster and the west remains particularly challenging. The recovery will be patchy and uneven in 2010 and I expect the average house price to remain a little erratic until sales volumes return to more normal levels.

"The market is increasingly influenced by the private rental sector which has grown significantly because investors or owner-occupiers are either unable or unwilling to sell at the new lower price levels, while demand has risen from those who find it harder to obtain a mortgage or who have deferred buying a home in the belief prices will fall further."

The survey confirmed the affordability of housing, with 54% of all properties selling at or below 150,000. At one extreme, terraced/townhouses at an average price of 123,023 were down by 2.3% over a year and semi-detached houses fell by 4.3% to an average of 144,888. In contrast the average price for a detached house rose by 20.7% to 292,852 and for semi-detached bungalows it was up 15.6% to 137,706. Apartments rose by 2.4% to 142,959 and detached-bungalows increased by just 0.5% to an average of 185,470.