Housing prices in North still falling but activity up - survey

PROPERTY PRICES have continued their downward slide in the North but the local housing market has witnessed an increase in “activity” over the last three months, according to latest industry research.

A new housing market survey published today by the Royal Institution of Chartered Surveyors (RICS) shows little sign of recovery on the property price front as buyers’ confidence remains at an all-time low.

But a significant number of chartered surveyors in Northern Ireland have reported an increase in transaction levels over the last three months, which signals a glimmer of hope for the North’s depressed housing market.

Tom McClelland, RICS Northern Ireland housing spokesman, said average house prices in the North are now in some cases 45 per cent below peak.

The latest RICS research, sponsored by Ulster Bank, shows 58 per cent of chartered surveyors reported a drop in property prices over the last three months. They were more upbeat about future prospects, with 73 per cent stating they expect prices to remain at current levels. Mr McClelland said this reflects an industry-wide consensus average house prices in the North may have “experienced the large majority of their correction”.

He said generally some areas and property prices may be “at or near the bottom of the market”.

According to the RICS, the housing market across the UK generally saw a further increase in both new buyer enquiries and sales last month. The latest national survey shows a reduction in the level of stocks on surveyors’ books which the RICS believes has already begun to provide some support for property prices in the UK.

But the survey also reports a decline in “new instructions” among chartered surveyors, which the RICS said has translated into a drop in properties on surveyor’s books. “This is being most visibly reflected in the sales-to-stock ratio, widely seen as a key indicator of market slack, which saw a sharp increase from 15.2 to 20.1 per cent,” said Mr McClelland.

“Housing transaction levels have no doubt increased to some extent in recent months from very low levels, but we are probably still some way off what would be considered normal volumes. However, with houses now much more affordable, we would expect transactions levels to continue rising,” he said.