With 2024 rapidly approaching, now is a good time to step back and examine the state of the property market in Northern Ireland. This year has been slow, but in the process the market has calmed, providing a much-needed respite from recent years.
Lower inflation this year has been a welcome relief for many, and we’re hopeful that interest rates will be maintained into the new year, or even be reduced. This has the potential to make mortgages more affordable soon, the property market further.
The property market across the UK has been slow moving this year, but In Northern Ireland house prices are still increases. For the year ending October 2023, inflation was 4.6% and house prices increased by 4.4%.
This is significant as properties were on average able to hold their value by increasing in line with inflation. This suggests stability which could lead to more attractive mortgage rates in 2024, making it an opportune time for those looking to buy to enter the market.
Buyer and rental demand spikes
Buyer and rental demand has been on the rise across the UK this year, but particularly in Northern Ireland. Sales enquiries are up 27% across the board in comparison to 2019 pre-pandemic levels.
Enquiries per property are up even further, 37% higher than they were in 2019. This indicates a strong interest in the property market, which could potentially drive prices up in the future.
Rental demand has spiked even more in recent years. Enquiries for rental properties are up an astonishing 176% when compared to pre-pandemic 2019. Enquiries per rental property are up even more, with 295% more enquiries than in 2019.
This surge in demand for rental properties could potentially lead to an increase in rental prices, which are already up 10% for the year, providing a lucrative opportunity for landlords.
This surge in demand means finding potential buyers or tenants will potentially be much quicker, and gives you more leverage as a seller or a landlord.
On average properties are selling 12 days faster than they did in pre-pandemic years, and rental properties are being let 16 days faster. This quick turnaround time is beneficial for both sellers and landlords, as it reduces the amount of time a property is left in a void period.
Volume of properties on the market is down
It already looks like a seller’s market, and that’s being reinforced by an overall drop in the volume of properties on the market.
There are 38% less properties on sale and 43% less properties to let in Northern Ireland than there were in 2019. This scarcity of properties could potentially lead to a further increase in property prices.
More demand yet less properties means quicker turnaround for sellers and landlords, making now an opportune time to sell your property or to consider letting your current property or investing in a new Buy to Let property.
With the current trends, we’re cautiously optimistic about the property market in Northern Ireland going into the 2024. Only time will tell but right now the market is stabilising after years of fluctuation and speculation.
If you’re considering capitalising on the recent spike in demand for properties by selling or letting your property, or you’re just curious what your options may be, book a free property valuation today.