Last month the Northern Ireland Statistics and Research Agency and Ulster University in partnership with the Northern Ireland Housing Executive and Progressive Building Society both released their own statistics report for the second quarter or Quarter 2, ‘Q2’, for 2023.
The reports give an indication as to where the Northern Ireland property market is right now with promising increases in volume of property sales and increases in house sold prices, however these statistics are usually provisional and could be revised in the next quarter.
Interest rates and high inflation continue to be the factors leading uncertainty in the market, and as such the statistics for Q2 2023 should be understood within the wider context of the current economic position Northern Ireland and the rest of the UK are experiencing. That said, the second quarter of 2023 has been good for Northern Ireland properties.
Overall NI House Price Index increases from Q1 to Q2
The overall house price index has increased by 1.4% from the first quarter. Compared to Q2 2022 however, it has increased more significantly by 2.7%. The first quarter of 2023 had seen a fall in the NI house price index in comparison to the second half of 2022, so this could suggest a return to growth.
The Progressive Building Society summarises that despite the pressure the market is under from consecutive Bank of England interest rate hikes and continued high inflation, it’s a decreasing supply that is underpinning prices. The reduction of volume of properties for sale is driving some prices up. especially as some sellers are holding off putting their properties to the market as they wait for uncertainty around the market to wane.
The volume of sales in Northern Ireland for Q2 of 2023 was higher than in the three preceding quarters, contributing to the decreasing supply of properties. In Q2 2023 alone there were 4,776 verified residential property sales, but the Northern Ireland Statistics and Research Agency suggest that this number will likely be revised upwards to account for late-reported sales and new properties being entered into the NI Valuation List.
With less properties on the market and demand still high, now is the time to find out exactly how much your property is worth with a free face to face property valuation.
Majority of NI districts experience property price increases
The Ulster University in partnership with Northern Ireland Housing Executive and Progressive Building Society observed that out of the 11 local government districts (LGD) in Northern Ireland, 8 saw property price increases in the second quarter in comparison to the first quarter of 2023. Derry City and Strabane experienced the highest increases of 9.6%.
The house price index increased for all property types, but most notably apartments increased the most by 4%. This could indicate a recovery from the previous decrease in price towards the of 2022 which continued into the first quarter of 2023. Compared to the second quarter of 2022, the house price index for apartments has increased by 2.6%.
Of properties sold during Q2, terrace properties were the most frequently sold with 32.3% of sales being for such properties. Closely behind, 30.8% of properties sold in NI during Q2 were semi-detached, and 27.4% were detached. 9.4% were apartments, which while much lower in demand than the other property types, is an increase as sales for apartments remained around 8% of all sales between 2013 and 2021.
Before you decide to sell your property, a free property valuation is available with Reeds Rains. Book an appointment with your local sales expert today.