The report looks at trends in house prices in Northern Ireland

The average home in the province is now worth �112,806, up 4.7% on the first quarter of the year, according to the University of Ulster Quarterly House Price Index survey.

The annual increase is into double digits for the first time since 2002.

The report, published on Monday in conjunction with the Bank of Ireland and the Housing Executive, indicates that the annual rate of growth accelerated to 10.55%.

The figures are based on a sample of 2,551 open market transactions across the entire range of house types during the vibrant second quarter market.

The report's authors - Professor Alastair Adair, Professor Stanley McGreal and Mrs Suzanne Allen of the University of Ulster - said price levels suggested another step-up in the housing market after a period of more stable conditions.

AVERAGE REGIONAL PRICES Northern Ireland: �112,806 Belfast: �112,077 North Down: �118,601 Lisburn: �130,591 East Antrim: �95,704 Londonderry/Strabane: �98,581 Antrim/Ballymena: �102,633 Coleraine/Limavady/North Coast: �124,347 Fermanagh/South Tyrone: �112,850 Mid Ulster: �114,752 Mid and South Down: �123,290 Craigavon/Armagh: �102,068

"The local market reflects the current strength of house prices throughout the UK, helped by a favourable economy, while rising interest rates have not yet impacted on prices," they said.

"Although the index indicates a still strongly performing market, the growth rate here is more sustainable that in other UK regions."

The highest priced city location remains south Belfast where prices went up to an average of �141,727, closely followed by Lisburn.

In Coleraine, Limavady and the north coast the increase was 9.3% to �124,347.

Second homes

A characteristic is high-priced coastal towns where increasing numbers of people have second homes - indeed the north coast is the second most expensive location in Northern Ireland outside of Belfast.

The highest rates of growth are now in the bungalow sector.

The average price of detached bungalows rose by more than 16% over the year to �151,859.

Semi-detached bungalows increased by almost the same rate to an average of �96,267.

Semi-detached houses went up 13.3% to �105,203. Detached houses had a more modest 8.3% increase to an average of �166,065.

Apartments, which perform differently from other property types, were relatively unchanged with an annual rise of less than 1% to �97,040 but the authors said a high volume of apartment sales in north and west Belfast during the quarter helped subdue the overall figure.

Price rises in other places outside Belfast were higher.

Bank of Ireland eonomist Alan Bridle, said: "Employee jobs are increasing, the jobless rate is declining and this survey indicates continued expansion in private sector output."

Housing Executive Head of Research Joe Frey said the executive had noted the more rapid than expected rise in house prices.

He said it was aware of the increasing problems being faced by first-time buyers in particular.

"However, the effects of recent rises in interest rates have not yet fully taken effect as many purchasers are still benefiting from low interest fixed rate mortgages and there are strong indications that as in Great Britain the rate of house price increase is already slowing," he said.