Derry and Strabane posts biggest average house price rise of 9.6%

The latest findings from the Ulster University Quarterly House Price Index indicate the average price of a house in Derry City and Strabane rose by £15,381 from £160,164 in Q1 to £175,545 in Q2 in 2023 - a 9.6 per cent increase.

"A total of eight out of the 11 districts saw price increases in the second quarter compared to the first quarter of 2023, with Derry City and Strabane seeing the largest price increase of 9.6 per cent, closely followed by Ards and North Down and Armagh City, Banbridge and Craigavon which both saw increases of 5.1 per cent,” according to the new report.

The report further notes how ‘in the Derry City and Strabane LGD there was a subtle increase in transactions within the detached and semi-detached segments of the market, increasing to 27 per cent and 32 per cent respectively this quarter, with average prices of £291,740 and £164,725’.

The average price of a house in Derry City and Strabane remains the lowest in the North. The highest average price is Causeway Coast and Glens at £243,560.

The average house price across the North was £204,331 in Q2 and this reflected an increase of 0.7 per cent between Q1 and Q2 in 2023.

Derry and Strabane thus was an outlier in terms of the size of the price increase, as Dr. Michael McCord, Reader in real estate valuation at Ulster University, explained.

“Our latest report shows a housing market which continues to cool amidst the dynamic and turbulent interest rate hikes and mortgage repricing environment.

"House prices have however remained resilient in quarter two of the year showing a nominal increase from quarter one of 2023 - remaining at the level seen at the beginning of the year.

"Despite this resilience, the market faces ongoing challenges with a potential recession on the cards, and with increasing signs of wanning buyer demand and increased mortgage borrowing costs, it looks increasingly likely that the market will continue to slow down into the second half of 2023 as the volatile financial setting continues to filter into the housing market,” said Dr. McCord.

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