Derry/Strabane house prices up 5.8% to £163,434

The Northern Ireland Quarterly House Price Index (Q4 2023) shows Derry and Strabane recorded the third highest percentage increase in the North in the fourth quarter compared to the third quarter of 2023.

House prices in Derry City and Strabane were up by 5.8 per cent from £154,525 to £163,434, which remains, however, the lowest average house price in the North.

Only Causeway Coast and Glens, which saw double digit growth of 13.4 per cent, and Newry Mourne and Down where prices climbed 5.9 per cent, recorded higher increases.

Dr. Michael McCord, Reader in Real Estate valuation and lead researcher shared his thoughts on the latest findings: “The housing market continued to display nominal growth in the last quarter of 2023 of 0.4 per cent, and ongoing price stability and resilience against the wavering economic and political backdrop.

"There were however clear signs of a slowdown in buyer enquiries and a reduction in sales transactions over the quarter, a trend which was evident across the entirety of 2023 as potential buyers weathered the volatile interest rate and mortgage interest rate movements.

"The end of 2023, and beginning of 2024, has seen a more settled interest rate environment which has transcended into the mortgage market with lenders beginning to reduce rates and provide more attractive deals.

"With the direction of travel for interest rates arguably on a downward trend throughout 2024, allied with reducing inflation, the housing market should exhibit increased buoyancy within the first half of 2024.”

Ursula McAnulty, Head of Research with the Housing Executive, which commissions the research, said: “Despite a challenging economic environment in 2023, house prices in Northern Ireland have maintained stability, with a modest 0.4% increase from Q3 2023 to Q4 2023, and an annual weighted price increase of 2.9 per cent in comparison to Q4 2022. 

"This strong end to 2023 in terms of pricing levels is likely to continue into 2024, with the vast majority of agents predicting consistent pricing structures into the new year.  The restoration of a devolved government in Northern Ireland should provide for a more stable political environment, and we look forward to continue working with partners across the housing field.” 

Michael Boyd, Chief Executive of Progressive Building Society said: “While facing a number of headwinds, the Northern Ireland housing market once again posted a resilient performance in the last quarter of 2023, highlighting a strong demand and supply picture.

"Despite both quarterly and annual gains, there is little doubt borrowers remain under pressure in the face of continued cost-of-living pressures linked to recent inflationary pressures and a still-high interest rate environment.

"However, while transaction volumes have waned, a lack of new supply is likely to underpin house prices in the coming months. In addition, the sharp slide in inflation in recent months and moribund interest rate environment are likely to offer further support, as is the boost to sentiment from the resumption of the Executive at Stormont.”

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