House prices in Northern Ireland have plummeted nearly 30 per cent over the last year, a report said today. The University of Ulster survey confirmed 2008 was the worst year for the region’s housing market since the start of the 1980s.
The authors of the report said the 28 per cent drop was no surprise and argued that it came with the silver-lining that homes were becoming more affordable for first-time buyers.
“The decline in the overall average price indicates that Northern Ireland is being exposed to the full rigours of the market downturn,” said the experts behind the report’s findings.
“However on the positive side, the market is much more affordable which may well stimulate the first-time buyer and provide the basis for a sustainable recovery during 2009.”
The figures were contained in the latest University of Ulster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Housing Executive.
The survey showed prices had fallen by just over 28 per cent in 2008. It also confirmed the continuing low volume of house sales, with 704 transactions recorded in October, November and December, a figure just slightly up on the previous quarter’s report of 670.
The sharp decline confirms the downward trend of recent years. But the drop followed a period of rapid increases when the North's house prices rocketed over a very short period of time.
The survey covers approximately 120 estate agents and records all open-market transactions.
It showed the overall average price of a house in the final quarter of 2008 was £168,185 - a drop of 16.6 per cent on the third quarter.
While the survey showed the weighted rate of decline across the market was 28.2 per cent over the year, some property types saw greater falls than others.
The sharpest drop was in detached bungalows, down 34.9 per centover the year to an average price of £218,216.
Semi-detached bungalows fell by 34.2 per cent to £139,375 while apartments were down 29.8 per cent to £153,564. Terraced/townhouses fell by 28 per cent to an average of £134,905. Detached houses fell by 27.3 per cent to £247,058 and semi-detached houses fell by 26.4 per cent to an average of £166,102.
In Belfast the average price of housing at £178,399 showed a 20.9 per cent annual decline, indicating it fared better than the
PA