Derry house prices drop again: survey

House prices in Derry region remain the lowest in NI.

The latest Ulster University House Price Index indicates a slowdown in price growth for residential properties right across NI during the fourth quarter of 2021.

The report, premised upon 2,234 transactions, reveals an overall average house price of £198,890 which represents a weighted annual level of growth of 8.3% between Q4 2020 and Q4 2021, and a quarterly increase of 1.1% relative to Q3 2021.

In the Derry City and Strabane district, the average house price dropped from £149,085 in Q3 2021 (July-September) to £126,114 in Q4 2021 (October-December) - that’s a 15.4% drop and the highest for the whole of the North.

The only other NI regions to record marked decreases were Causeway Coast & Glens, Belfast and Antrim & Newtownabbey.

Lead Researcher, Dr Michael McCord, Reader in Real Estate, Ulster University, said: “The latest price statistics show a market which has remained resilient to the wider political and economic circumstances in what is traditionally a quieter period of the year. The analysis does show a softening in price growth in comparison to previous quarters – both in annual and quarterly terms – but one which continues to display strong demand signals, and allied with ongoing supply-side challenges, does not show any signs of correcting in the immediate future.”

Ursula McAnulty, Head of Research at the Northern Ireland Housing Executive, which commissions the survey, said: “The latest figures produced by Ulster University demonstrate that the demand/supply imbalance continues to prevail.”