Northern Ireland house prices have grown by 4% over the last year to reach an average of£139,951, according to latest figures.

The government’s residential property price index by Land and Property Services said there has also been growth of 2.3% over the last quarter.

Overall, prices have recovered by 26.1% since the early 2015 – with 10 out of 11 district council areas showing an increase over the quarter.

Over the last year, houses in the Fermanagh and Omagh area saw the highest average price increase. The average house in the area now costs £132,642 – a 7.6% increase compared to the same period last year.

Derry City and Strabane saw the least annual growth at 0.2%. The average house in the area now costs £120,110 – the cheapest in Northern Ireland.

The most expensive residential property can be found in Lisburn and Castlereagh, where the average house is sold for £164,900.

Ulster Bank chief economist Richard Ramsey, however, said growth in house prices did not translate to economic growth, as house prices no longer had the same relevance as a measure of economic growth.

“House prices are always one of the most closely watched economic indicators by the general public or at least homeowners and potential first-time buyers,” he said.

“Although the rise of the private rented sector over the last decade means for an increasing share of society rent inflation is more relevant than house prices. Home ownership is not on the radar for as many under 40s as it once was.

“From an economist’s perspective, however, activity is a more meaningful indicator of economic health than prices. Residential property transactions have risen for the last eight years to 2018. But this continuous growth appears to have come to an end in 2019. A dip in transactions looks likely in 2020 particularly given the slowdown in the rate of house building.”

Article sourced from Belfast Telegraph website in an article on 13th November 2019 . Original full article can be viewed by clicking link below

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