Average house in North Coast drops

According to the report, the market in Coleraine/Limavady/North Coast remains volatile, with all sectors except detached houses, falling back.

However the survey also found that house prices in Northern Ireland generally rose moderately by 4.9% in the first three months of this year, in contrast to a decline of 35% in the first quarter of 2009.

While 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 number of sales reported by the 120 estate agents in the survey rose to 800 throughout January, February and March compared to 692 in the same period last year.

Recovery in the market remains tentative as sales fell to 800 from more than 1000 in the final quarter of 2009, according to the University of Ulster Quarterly House Price Index, produced in partnership with the Bank of Ireland and the Northern Ireland Housing Executive.

The authors of the report, Prof Alastair Adair, Prof Stanley McGreal and David McIlhatton said the latest data highlights the tentative recovery of the housing market.

"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 report uses a weighted index to even out the fluctuations in sample composition.

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 survey confirmed the affordability of housing, with 54% of all properties selling at or below 150,000.

The Housing Executive’s Head of Research, Joe Frey commented “The latest Quarterly Price Index provides further evidence of stabilisation in the housing market. However, bearing in mind the wider economic context and the expected reductions in public expenditure it would appear that the road to a more balanced housing market will be challenging”.