The Northern Ireland housing market sustained its strong start to 2017 last month, with prices, sales and expectations rising, according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Residential Market Survey.
The survey’s key indicator on price growth rose to its highest level (a net balance of +51%) in almost a year, suggesting house price inflation is picking up pace. Moreover, Northern Ireland respondents also expect prices to continue rising (a net balance of +24%).
Newly agreed sales also edged up, albeit modestly, in February (+5%) and surveyors expect this positive trend to continue over the three months ahead.
However, there is little sign of supply constraints easing significantly - a net balance of only +6% said that new instructions to sell rose last month. Meanwhile new buyer enquiries rose for the sixth month in succession, according to the survey.
The main findings of the survey were as follows:
The headline price balance for Northern Ireland was +51% in the latest survey, meaning that 51 percent more surveyors said that prices rose in the past three months than those who said they fell.
The price expectations balance at +24%, remains in positive territory. Meanwhile, sales expectations data (+28%) remains healthy.
The new buyer enquiries balance was positive for the sixth month in succession at +10%. The new instructions balance was up slightly for the first time in three months (+6%).
RICS Residential Property Spokesman, Samuel Dickey, says: “The Northern Ireland housing market has maintained some momentum into the second month of the year, with prices edging upwards and with reasonable demand evident. There is perhaps a hint that vendors are becoming more active as we move out of the winter months, but supply remains a challenge, and it remains to be seen if this eases in the months ahead.”
Sean Murphy, Managing Director, Personal Banking at Ulster Bank, says: “The Northern Ireland housing market has entered 2017 in growth mode, both in terms of prices and sales activity, and our own expectation at Ulster Bank is for strong mortgage demand, with the ongoing a very low interest rate environment and peoples’ desire to own their own home.”
