Money News
6th August 2008
Northern Ireland house prices 'down 4%'
Property prices in Northern Ireland are falling, bringing a two-year period of burgeoning growth to an end.
According to a study conducted by the University of Ulster, the average price of a home has fallen by four per cent on an annualised basis during the second quarter of this year.
During the past two years house price growth had been running at 51 per cent when the market was at its peak.
As a result of the fall, the average home in Northern Ireland is worth £226,934.
The study also detected a fall in transaction volumes, with just 1.044 sold during the month – a decline of 50 per cent.
Alan Bridle, head of research at Bank of Ireland, Northern Ireland, said: "There is no precedent in this region for what is happening in terms of a genuine housing cycle, so we are on a journey through the unknown - which itself is feeding the uncertainty.
"However, with a very quiet resale market, I believe there is a high probability of the average price dropping closer to the £200,000 level before the end of year, with a period of adjustment stretching into 2009."
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