Demand for new homes in Northern Ireland has eased but the still-tight supply picture means prices continue to rise.
That is the message from a survey of estate agents which indicated that the increasing cost-of-living crisis and the recent interest rate hikes may be cooling the appetite to move house.
The latest Royal Institution of Chartered Surveyors (RICS) and Ulster Bank Residential Market Survey revealed the lowest level of new buyer enquiries in over two years and also a slide in the number of newly agreed sales.
While some of the steam may have been taken out of the recent rally, it appears the upward momentum remains in place.
The majority of agents said prices had risen over the last quarter and most expected further gains in the coming three months. Underpinning the market is still a lack of new stock coming on to the market, as evidenced by the fact the number of new instructions to sell has fallen to a new low.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, said the demand for property is outstripping supply in both the transaction and rental market but overriding inflationary pressure have been apparent for some time.
“However, it isn’t surprising to see some cooling in the market which has been so buoyant for some time,” he said. “We will likely see the higher interest rates and the cost of living continue to have some impact on demand in the coming months.
“But it is likely that the lack of supply will continue to be the main factor in the market.”
The survey recent data from the Office of National Statistics showed the average price of a house stands at £165,000 in Northern Ireland, a jump of some 10% on the last year.
However, while the market in the province continues to climb, it continues to lag behind other regions of the Ƶ. In Scotland, the average house price stands at £188,000, in Wales £212,000 and in England nearly twice that of Northern Ireland at £302,000. Those regions have reported growth over the year of 11.2%, 14.4% and 13.1%.
