House prices drop sharply again

NI estate agents sold 1,044 houses in the second quarter of 2008

House prices in Northern Ireland fell sharply in the last three months of 2008, according to the latest University of Ulster property survey.

The average price of the 704 properties sold was �168,185 - a drop of 16.6% on figures for the third quarter.

Over the course of 2008, prices fell by more than 28%, the worst year for the Northern Ireland housing market since the early 1980s.

The report was based on a survey of more than 120 estate agents.

After years of a depressed property market in Northern Ireland, prices hit a series of record highs from the middle of the decade until 2007, but the past year has seen dramatic falls.

Its authors, Professor Alastair Adair, Professor Stanley McGreal and Louise Brown, said this latest fall in prices was an indication that "Northern Ireland is being exposed to the full rigours of the market downturn".

We have come a considerable way in getting back to more affordable housing levels Alan Bridle Bank of Ireland

Of the properties covered in the latest survey, 16% cost less than �100,000 while overall more than half cost �150,000 or less.

Bank of Ireland economist Alan Bridle said the latest research contained "both clouds and silver linings".

"The new average price of under �170,000 is something we would have expected to see later this year. The overall market is now back at mid-2006 levels, but that is not bad news for everyone," he said.

"We have come a considerable way in getting back to more affordable housing levels. From their peak, average prices have now fallen by more than 30% and by considerably more in many cases of newly-built properties."

Mr Bridle said some estate agents and developers were reporting an increase in enquiries since the new year.

"We may now be at the point for many where house buying is affordable and attractive again in the new ultra-low interest rate environment," he said.

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