Exceptionally high demand, low borrowing costs and a lack of stock will keep the housing market on an upward trajectory in the short term, according to the latest report from online portal PropertyPal.
It said the average price of a house in Northern Ireland has climbed 7.3% in the last year and now stands at £179,800, with demand for larger houses particularly prevalent.
Economist Jordan Buchanan said both sales and pricing activity accelerated during the second quarter of the year.
“Consumer confidence is improving in line with the easing of restrictions and the wider economic recovery,” he said. “Borrowing costs are exceptionally low by historic standards and ongoing lender competitiveness suggests this may improve further in the coming months.”
While he sounded a note of caution, he was bullish in the short term.
“Whilst there are some early signals that buyer demand is beginning to moderate, the overall near-term activity is expected to be strong.”
Prices across Northern Ireland range between £146,400 in Fermanagh and Omagh and £211,500 in Ards and North Down, according to PropertyPal.
It said average rental values in Northern Ireland have also jumped, up by 5.8% on the year to £682-a-month.
Again, a supply and demand imbalance is said to be behind the hike.
“Record high demand has failed to be met with significantly constrained supply levels,” Mr Buchanan said, adding there was an average of 44 enquiries sent to estate agents for each rental property on PropertyPal during the previous three months, compared to an average of 17 enquiries during the same period in 2019.
“Failing a significant uplift in the number of rental properties coming to the market, or an unexpected drop in demand, it is likely the near-term outlook will continue to put upward pressure on rents.”
