A dearth of supply is said to be one of the main reasons for continued strength in the Northern Ireland housing market, according to a new report
Website PropertyPal said there was a third less properties listed on its website in the second quarter of this year compared to the same period in 2020.
Along with strong demand and low borrowing costs, the lack of supply is said to be driving prices higher with the Northern Ireland average up 7.3% on the year to £179,800.
The rental sector has also been pushed higher by the tight market with average rents in Northern Ireland up £5.8% on the year £682 a month.
But it is in the sales market where activity is particularly strong.
“Underlying demand remains at exceptionally high levels and reduced property stock has meant upward pressure on prices, particularly for larger properties in desirable areas,” Chief Economist at PropertyPal Jordan Buchanan said. “Whilst there are some early signals that buyer demand is beginning to moderate, the overall near-term activity is expected to be strong.”
Backing up PropertyPal’s report is the latest Residential Market Survey from industry body RICS and Ulster Bank.
Estate agents it surveyed said prices, enquiries, instructions and sales in Northern Ireland were all higher than the UK average last month, with the number of newly agreed sales and new buyer enquiries the strongest of all 12 UK regions.
The RICS survey has reported strong growth for the last number of months, again flagging a lack of supply as the main driver.
However, it said supply constraints may have eased slightly with agents are reporting that the number of properties listed for sale appears to have increased in the past month.
“June ended a very busy first half of the year for the Northern Ireland housing market and it was another month when new buyer enquiries and newly agreed sales were strong,” Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, said. “Encouragingly, surveyors are also reporting that instructions to sell were higher, which should help ease supply issues, which in turn should support sales activity and help ease price pressures.”
