House prices in Northern Ireland are still edging up even as buyer demand, sales and listings all come down, according to a report today.
The Royal Institution of Chartered Surveyors (RICS) and Ulster Bank Residential Market Survey found there had been a drop in enquiries from new buyers.
Even more surveyors and estate agents who are members of RICS said there had been a fall in newly agreed sales during February. Others said there had been a fall in new instructions to sell.
However, the rate of decrease in both measures was slower in February than it has been in January.
And surveyors were reporting a rise in prices during February in larger numbers than the month before.
In fact, greater numbers of surveyors in Northern Ireland are reporting rising prices than in any other UK region.
Looking ahead, surveyors in Northern Ireland said they expect the market to remain weak in the next three months. But they were more positive about how things might be in a year’ time.
According to RICS, NI and Scotland are the only UK regions expecting both sales and prices to be higher this time next year.
Samuel Dickey, RICS Northern Ireland residential property spokesman, said: “Unsurprisingly, the February survey outcomes point to overall relatively weak market conditions, albeit that there are of course variations between different parts of NI with some areas seeing ongoing good demand.
"Looking ahead, despite a range of economic challenges, NI respondents overall remain more confident about prices and activity during the next year than their counterparts elsewhere in the UK.”
Terry Robb, head of personal banking at Ulster Bank, said that while market conditions had changed in the past year and demand had dropped, there were still a wide range of borrowers who wanted to buy their first home.
According to the latest house price index from Halifax, Northern Ireland’s average house price increased by 5.7% to reach £185,009 over the year to February.
That left Northern Ireland with the strongest annual growth of 12 UK regions, according to the lender.
But the Government’s residential property price index (RPPI) has reported a fall in prices for towards the end of the year.
It said the price of the average home fell towards the end of last year to around £175,200, with the number of homes sold during 2022 down 20%.
FAQs
This trend continued in Q4 of 2023 as the average house price in Northern Ireland increased by 0.4% reaching £207,010. Annually, prices increased by 2.9% compared to Q4 of 2022. Research shows signs of slowing market activity with transactions at their lowest level over the year, decreasing 26% on the previous quarter.
When demand decreases real estate prices? ›
During a recession, demand for homes decreases; if you need to sell your home, it may be a tough time to do so or you may end up selling it for a loss. The neighborhood you live in can also be adversely affected by a recession, depressing property prices there.
Will house prices go down if there is a recession? ›
What happens to house prices in a recession? While the cost of financing a home increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.
Is 2024 a good time to buy a house? ›
Yes. This is the best time to buy a house in California. With the current trend in the CA housing market, you'll find better deals on your dream home during Q2 2024. As per Fannie Mae, mortgage rates may drop more in Q2 of 2024 due to economic changes, inflation, and central bank policy adjustments.
Is it a good time to buy in Northern Ireland? ›
This is good news if you plan on buying or selling in Northern Ireland, as demand is getting stronger, and house sales are expected to continue to rise. So, if you're looking for a new home, whether you're upsizing, downsizing, or getting on the property ladder, 2024 looks like a good year to make a move.
Will house prices fall in Northern Ireland in 2024? ›
"Northern Ireland witnessed a steady increase in property prices throughout 2023 and January 2024, and it is expected that this trend will be sustained throughout the coming months as we continue to see demand across our five-branch network in Northern Ireland.
Should I sell my house now or wait until 2024? ›
Best Time to Sell Your House for a Higher Price
April, June, and July are the best months to sell your house in California. The median sale price of houses in June 2023, was $796,400, which is expected to grow more in 2024. However, cities like Arcadia and San Mateo follow an upward trend throughout the year.
Why does price go up when demand goes down? ›
For producers, the need to satisfy consumer preferences influences their decision to supply, hence affecting the demand. As demand decreases, the price for the commodity is suppressed. As more suppliers join the market to satisfy the customer needs, the demand increases, leading to an increase in the commodity price.
What happens to price when decrease in demand? ›
Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases.
Should I wait to buy a house until the market crashes? ›
Fewer people with the means to buy means a lower chance of homes selling, which could keep homeowners from listing and decrease your options as a buyer. There are some potential upsides to buying a home during a recession, though, if you're financially able to do so.
Because a decline in disposable income affects prices, the prices of essentials, such as food and utilities, often stay the same. In contrast, things considered to be wants instead of needs, such as travel and entertainment, may be more likely to get cheaper.
Is it better to have cash or property in a recession? ›
Cash: Offers liquidity, allowing you to cover expenses or seize investment opportunities. Property: Can provide rental income and potential long-term appreciation, but selling might be difficult during an economic downturn.
What is the 30-year mortgage prediction for 2024? ›
The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. Here's where mortgage interest rates are headed for the rest of the year and how that will impact the housing market as a whole.
What is the best month to buy a house? ›
Late summer to early fall is also considered one of the best times of the year to buy a house because the competition levels cool down following the busy spring and early summer months.
Is it a buyers or sellers market in 2024 in the USA? ›
The median home-sale price as of February 2024 was $384,500, up 5.7 percent from one year ago, according to NAR data. The nation had a 2.9-month supply of housing inventory as of February, per NAR, which is low enough to be considered a seller's market.
What is the housing situation in Northern Ireland? ›
Northern Ireland is experiencing a housing and homelessness crisis. A record number of households are on NI's social housing waiting list, three quarters of whom are deemed to be in housing stress or acute housing need.
What are the predictions for the Irish housing market? ›
The 2024 residential property review and outlook survey carried out by the Society of Chartered Surveyors Ireland (SCSI) found that 63 per cent of its members believe house prices have either peaked and should start to decline or are close to peaking and will level off soon.
Are house prices declining in Ireland? ›
When looking at property type, house prices in Dublin fell by 0.7%, while apartment prices were down by 0.4%. The figures show that residential property prices in Ireland appear to be accelerating again, following a period of sustained deceleration throughout most of 2022 and 2023.
Is housing expensive in Northern Ireland? ›
The cost of living in North Ireland's capital, Belfast, can occasionally be a little higher than average. You can expect to pay around £800 – £1,000 for a one-bedroom flat in the city centre, compared to £2,000 in London. For a 3-bedroom flat in Belfast, rent is around £1,300 per month on average.
