House prices rise in Londonderry for third consecutive quarter

Economists and bankers said the disproportionate number of sales in the detached house sector (£244,000) and the absence of evidence of terraced and bungalow sales skewed the overall average price in Londonderry and Strabane upwards.

The latest quarterly University of Ulster House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, shows that in Londonderry and Strabane the average house is now selling for £159,069.

The small increase of £793 is the third consecutive quarterly rise in Londonderry and Strabane although smaller than the £10,000 spike noted in February and the £30,000 spike experienced last autumn.

The report shows Londonderry bucked the Northern Ireland-wide trend showing greater buoyancy than in most other places.

Authors Professor Alastair Adair, Professor Stanley McGreal and Dr David McIlhatton stated: “For Derry/Strabane the overall average price level (£159,069) is highly comparable to that for the previous survey (£158,276) indicating that the local market has maintained its position and indeed has strengthened over the year.

“However, the volume of sales evidence is low and a disproportionate number of sales in the detached house sector (£244,000) has helped to skew the overall average price upwards.

“Semi-detached houses (£97,917) which forms an important part of the local housing market have increased in average price level over the year by 2 per cent but have declined in value by 4.9 per cent compared to the final quarter of 2010.

“This type of variability has characterised the Derry/Strabane market over the past year and is likely to continue to do so over the current year.”

By contrast the average price of a house was down in the neighbouring Limavady/Coleraine/North Coast market. The authors said this was symptomatic of the state of flux the NI hosuing market is currently in.

“For the Coleraine/Limavady/North Coast market, the overall average price £130,284 is down on an annual and quarterly basis reflecting the wider Northern Ireland picture. However, an improved sample size suggests that there has been market activity with an element of confidence being restored to the market. Performance by property type indicates that the semi-detached house sector (£144,678) is the market leader with the average price up by 2.5 per cent over the year and by 2.6 per cent for the quarter. However, the detached house sector has performed less well with the average price dropping back to £192,200 and detached bungalows to £145,053.”

report states.