Derry & Strabane average house price rises by 7.5% (£12,868) to £186,968, now higher than Antrim & Newtownabbey

The average price of a home in the district increased by £12,868 from £174,106 to £186,968 between Q1 2024 and Q2 2024.

Houses in Derry & Strabane are now, on average, more expensive than in Antrim and Newtownabbey, where house prices decreased by 4.7 per cent from £190,145 to £181,137 over the same period.

The figures were revealed in the Quarterly House Price Index, produced by Ulster University in partnership with the Housing Executive and Progressive Building Society, which focused on housing market activity during the second quarter of 2024 (April, May, and June).

“Price moves across government districts in Northern Ireland varied once again. A total of six out of the 11 districts saw price increases in the second quarter compared to the first quarter of 2023, with the largest in Derry City and Strabane where prices were up 7.4 per cent, followed by Mid & East Antrim which was up 6.6 per cent and Armagh City, Banbridge and Craigavon which was up 3.5 per cent.

"Ards & North Down saw prices climb by 2.9 per cent, Causeway Coast & Glens recorded an increase of 2.9 per cent which prices were up 1.8 per cent in Belfast.

"In terms of price declines, Lisburn & Castlereagh recorded the largest slide with prices down 5.8 per cent, Antrim & Newtownabbey was down 4.7 per cent, Newry Mourne & Down eased back 4.3 per cent, Fermanagh & Omagh was down 3.7 per cent and Mid Ulster was down 3.4 per cent,” the report states.

In Causeway Coast and Glens the average price of a house rose by 2.5 per cent from £229,643 to £235,379 over the quarter. Only Ards & North Down (£248,267) and Lisburn & Castlereagh (£237,462) posted higher house prices.

The average house price in the North as a whole rose at a modest rate of 2.5 per cent, with the average house price currently £211,225, the highest since Q2 2008.

This figure represents a 2.6 per cent increase from Q1 2024 and annually a 2.5 per cent increase from Q2 2023.

Despite rising prices, the market structure remained more balanced than the 2008 housing bubble whereby 50 per cent of properties sold for over £200,000, compared to 38 per cent in 2024.

Dr Michael McCord, Reader in valuation, investment and finance at Ulster University, and lead researcher stated: “Quarter two of 2024 has seen increasing momentum within the housing market as interest rates have stabilised, inflation eased to target levels, and an increasing competitive borrowing environment evident as lenders continue to cut their rates.

"This more benign macro-economic setting has seen heightened consumer confidence within the housing market depicted by elevated transaction levels, listings, and continued house price growth evident throughout the quarter.

"This house price growth looks to continue over the remainder of 2024 as supply constraints and a reduction in new build activity continues to impact on market activity.”

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Ursula McAnulty, Head of Research at the Housing Executive, which commissions the analysis, said: “This most recent Q2 2024 report indicates continuing stability within the housing market in NI with a modest annual weighted house price growth of 2.5 per cent, bringing the average price of a home in Northern Ireland to £211,000. 

"There are signals that this steady house price growth will continue: Q2 2024 recorded the highest number of transactions since early 2022, over 60 per cent of agents expected continued house price growth moving into the second half of 2024 and over 70 per cent of agents report improved consumer confidence in their market area. 

"Once again, the continuing supply constraints was flagged by agents and, coupled with the ongoing demand, all point to steady upward growth of house prices.” 

Michael Boyd, Chief Executive of Progressive Building Society, said: “A resumption of the uptrend for the Northern Ireland housing market in the second quarter of the year reflects the steady slide in inflation and the still-tight supply and demand picture.

"Growing expectation that the Bank of England will cut interest rates in the coming months has already brought high street rates lower, although recent murmurings from the central bank suggest any further cutting of rates will be measured, particularly in the immediate future.

"In the meantime, a lack of new stock – either new build or for resale – coming on to the market looks likely to limit any downside.”

Across the North detached properties showed the most significant price growth, with an annual increase of 5 per cent and a quarterly rise of 3.6 per cent, recording an average price of £314,394.

Prices for terrace and townhouses increased by 1.9 per cent quarterly and 5 per cent annually, with an average price of £144,138.

Semi-detached homes saw minimal quarterly growth of 0.1 per cent and a slight annual decline of 0.6 per cent, maintaining an average price of £193,974.

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Apartment prices rose by 2.9 per cent quarterly but faced an annual decrease of 1.2 per cent, averaging £156,300.

Overall, the annual rate of price change – which slowed over the course of 2023 – exhibits an unweighted increase of 4.8 per cent compared to Q2 2023.

The authors say the property market continues to demonstrate resilience and growth, supported by stable economic factors and strong buyer demand.

It is anticipated to maintain its upward trajectory, with sustained demand and potential interest rate cuts boosting buyer activity.

However, supply issues may continue to challenge the market's balance and the potential easing of interest rates and continued government initiatives may further influence market trends as the year progresses, the report adds.

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