Upturn in Larne property market

The latest University of Ulster Quarterly House Price Index reveals that the number of transactions completed recently across the Province is the highest since 2008: before the global financial meltdown that caused the housing market to crash.

Values that had been inflated during the boom have been slashed but the rate of depreciation, which was running at 35 per cent at the start of 2009, has slowed to 7.3 per cent over the past year and the overall average sale price increased by 1.8 per cent over the quarter.

In East Antrim, the price fall mirrored the Northern Ireland average over the year and the average price is now 137,088 which the report describes as “an improved situation”. All property types showed reductions, with the exception of detached homes, which were up by 5.7 per cent to 212,321.

Larne estate agent Ken Sives said the survey appeared to be spot-on. “We have seen a good upturn locally since the turn of the year,” he added.

“I think we may be over the worst of it. I wouldn’t say there are any great rays of sunshine just yet, but the sun is maybe peeking out from behind the clouds.”

Mr Sives said vendors were increasingly realistic about asking prices. “I think people have come to realise that if they want to sell they have to come to terms with the current market values. There are a few people who maybe put their homes on the market when prices were higher and they don’t want to reduce the asking price. But similar properties coming on the market at a lower price are the ones that are getting the viewings.”

The authors of the quarterly price index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, said: “This latest survey indicates an improving housing market. Although overall average prices are still down, the rate of price decline has slowed significantly, with prospects for a modest increase in price levels during 2010.”

The price statistics are based on a sample of 1,050 transactions in the fourth quarter of last year. Although that is about half of what would be expected under normal conditions, the report said there had been a significant increase in the number of sales from recent surveys, suggesting a recovery in the market could be underway.

Economist Alan Bridle, head of economics and research at Bank of Ireland Northern Ireland, said: “The real mark of recovery in our housing market will be a pick-up in the number of transactions. This survey sounds an encouraging note.

“Steady progress in activity levels may be the most likely and desirable scenario for this year ,but in my view we should not expect much of a rebound in average prices and there is still a risk of them slipping further.”