NI house prices show green shoots

The average house price was £158,886 in the second quarter of 2009

House sales in Northern Ireland are rising, a University of Ulster survey has found.

Figures show 950 transactions were made from April to June, up more than 150 on the previous quarter. This is still low compared with normal market conditions.

The average house price was £158,886, an increase of 0.5% on the January-March figure, when it fell 10.8%.

The report's authors said this was "the first tangible evidence" of a turnaround in the NI property market.

According to the report, anecdotal evidence from several estate agents earlier this year of an increasing number of inquiries is now being translated into sales.

It provides some encouragement that the two year-old housing recession in Northern Ireland may be coming to an end Alan Bridle Bank of Ireland economist In figures: NI house price survey

Some impact on price is expected as buyers capitalise on lower sales prices.

The report, which is produced in conjunction with Bank of Ireland, said there was a "shift towards greater affordability" with 19% of properties selling at or below £100,000.

The majority of houses in the survey (62%) of about 120 estate agents sold at or below £150,000.

'Process of recovery'

The report's authors - Professors Alastair Adair and Stanley McGreal and Mrs Louise Brown - said the survey "provides the first tangible evidence that the housing market is starting the process of recovery".

"Transactions, although still below normal market conditions, are up, the rate of price decline is reducing and growth has occurred in some market sectors during the second quarter of 2009."

There is still some way to go before a more balanced market emerges Joe Frey Housing Executive

Bank of Ireland economist Alan Bridle said the survey "provides some encouragement that the two year-old housing recession in Northern Ireland may be coming to an end".

"The results also chime strongly with the improving sentiment being reflected in various UK-wide readings of the residential market, qualified of course by recognition of the severity of this particular downturn," he said.

Housing Executive head of research Joe Frey said indications that the market was stabilising were welcome, but he warned it was "important to be cautious at this stage".

"First-time buyers are still having to find deposits of 25% and there are still considerable numbers of unsold new properties on the market," he said.

"There is still some way to go before a more balanced market emerges."