House prices keep on rising

However, the University of Ulster quarterly house price index survey showed growth had slowed considerably and sales had fallen sharply.

The survey showed that priced growth slowed from 51% in the second quarter to 40% in the third.

Stanley McGreal, one of the report's authors, said the report represented a watershed for the housing market.

"There has been a clear change of sentiment reflected not only by the reduced rate of growth but a significantly lower sales volume, down by a third compared to the same quarter in 2006," he said.

"In essence, there are still high price levels but much lower growth rates and considerably reduced sales activity."

Bank of Ireland's Head of Research in Northern Ireland, economist Alan Bridle said: While the market temperature has obviously cooled, the analogy of the balloon going 'hiss' rather than 'pop' seems most appropriate.

"In my view, the most telling statistics are the sharp drop in transactions and the evidence that prices are 'sticky' in most areas because they are not responding quickly to the signs of lower demand."

The Housing Executive's Head of Research, Joe Frey, said there was as yet no evidence of significant falls in actual house prices.

"First-time buyers in Northern Ireland are therefore going to continue to become an increasingly rare species for the foreseeable future," he added.

Annual percentage increases by property type
Market sector	Annual change
Terraced house	40%
Semi-detached house	41.3%
Detached house	35%
Semi-detached bungalow	37%
Detached bungalow	45%
Apartment	43%
Source: University of Ulster Quarterly House Price Index

Average house prices by region
Location	Average price Q2
Northern Ireland - All	�250,586
Belfast - All	�258,332
North Belfast	�212,913
South Belfast	�280,287
East Belfast	�264,793
West Belfast	�214,225
North Down	�279,127
Lisburn	�284,599
East Antrim	�222,759
Londonderry/Strabane	�185,863
Antrim/Ballymena	�222,193
Coleraine/Limavady/N Coast	�285,938
Mid Ulster	�292,931
Enniskillen/Fermanagh/S Tyrone	�191,368
Craigavon/Armagh	�241,410
Source: University of Ulster Quarterly House Price Index