House prices in the Derry council area are around 50% lower than the Northern Ireland average, it’s been revealed.
New research reveals that buying a house in Derry City & Strabane District will cost on average £106,664, compared to the mean across the North of £158,528.
Property in Derry and Strabane is down over £6,000 compared to the same period in 2015 and is still way below the price tag for a home prior to the recession of 2007.
The new research has been carried out by Ulster University which looked at almost 2,000 properties sold in the period from April to June.
Ulster University’s Quarterly House Price Index Report, however, records a high volume of house sales and also highlights an 8.8% increase in the average house cost in the North, when compared with the first three months of the year.
In Derry & Strabane, it is only slightly up than the first quarter of 2016, and, out of the 14 areas examined, house prices here were second lowest, just a fraction above those in north Belfast.
Terraced and townhouses in the city and district are now selling at around £73,379, while semi-detached houses can be picked up for around £113,060.
The University research suggests an affordable housing market in Northern Ireland despite the increase in average house price. It reveals that the percentage of properties sold at or below £100,000 has dropped from 32 per cent to 26 per cent over the quarter. This reflects the higher demand from first time buyers, which is driving up the average price of entry-level properties to over the £100,000 mark.
The University report highlights that, in Derry/Strabane, the overall average house price of £106,664 is slightly up on the previous quarter. It outlines that terraced/townhouses at £73,379 and semi-detached houses at £113,060 have also increased.
Lead researcher Professor Stanley McGreal, from Ulster University, said: “The research is developed with support from estate agents across Northern Ireland, and most paint an optimistic picture about the market. However, a number of agents expressed concern that the increased uncertainty stemming from the EU referendum may impact on the market over the coming quarters if purchase decisions are delayed. At the same time, low interest rates are reducing the cost of mortgage repayments, which is making the property market more attractive.”
The new report has been produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society.
Joe Frey, the Housing Executive’s Head of Research, said: “There may well be a downturn in the UK’s housing market as a whole over the next year, partly as a result of the Brexit vote, but, given the sustainable rate of price increases in recent times in Northern Ireland, it is unlikely to impact significantly on the local market.”
Homes in south Belfast, the most expensive region of the 14 looked at across the north, are now selling for more than double those in Derry & Strabane, averaging £217,948.