Derry/Strabane average house price declines by 4.6% (£8,706) to £179,336

This represents a 4.6 per cent decrease over the final quarter – October, November and December – of last year.

The average price of a house in Derry & Strabane was the lowest in the North over the three months, according to the latest Quarterly House Price Index.

However, year-on-year the average price of a house locally was 3 per cent higher than this time last year.

The city and district was one of eight in the North to experience decreases over the quarter.

"A total of three out of 11 districts saw price increases in the fourth quarter, compared to the third quarter of 2024, with the largest in Antrim & Newtownabbey, where prices were up by 6.8 per cent, followed by Mid & East Antrim, up 4.9 per cent, and Lisburn & Castlereagh, up 4.2 per cent.

"In terms of price decreases, house prices fell by 11.1 per cent in Mid Ulster and were down by 9.1 per cent in Causeway Coast & Glen.

"They also dropped by 6.8 per cent in Armagh City, Banbridge & Craigavon, by 4.7 per cent in Fermanagh & Omagh, by 4.6 per cent in Derry City & Strabane, by 3.7 per cent in Ards & North Down, by 2 per cent in Newry Mourne & Down and by 0.6% in Belfast,” according to the quarterly report produced by Ulster University in partnership with the Housing Executive and Progressive Building Society.

Across the North as a whole the average house price went down to £214,478 – representing a 3.4 per cent decrease from Q3 2024 but still 2.9 per cent higher than Q4 2023.

The Quarterly House Price Index Report highlights that the reported dip followed successive increases over the course of 2024.

While the approach of Christmas generally influences purchase behaviour, information from agents suggests that fewer enquiries and purchases of larger, detached properties show consumers are tempering their spending.

This can possibly be attributed to the rise in employers’ National Insurance contributions, the increased rate of unemployment (4.4 per cent) reaching a six-month high, along with wider geopolitical factors, which are continuing to cause some uncertainty for households.

Research analysis by property type showed decreasing price movements throughout the final quarter, highlighting terrace/townhouse average price of £147,281 showing a price decline of 2.4 per cent, the same decline experienced for semi-detached sectors of the market with average prices dropping to £195,585.

The detached market showed a decrease of 1.9 per cent bring average prices to £319,402, and apartment prices went down slightly less, at 1.7% valuing properties at £159,991.

In comparison, annually, both the detached and terrace/townhouse sectors displayed price increases of 5.5 per cent and 5.6 per cent respectively, whereas the apartment sector displayed a smaller price increase of 2.9 per cent. The semi-detached sector revealed 0 per cent price growth relative to this time last year.

Overall, the annual rate of price change exhibits an unweighted increase of 3.6 per cent compared with Q4 2023 levels indicating that overall house prices remain higher than this time last year.

Dr Michael McCord, Reader in valuation, investment and finance at Ulster University, and lead researcher stated: “The Northern Ireland housing market remained resilient in the final quarter of 2024, recording annual house price growth of 2.9 per cent, despite a seasonal slowdown and a price dip in the final quarter of the year.

"The housing market has observed a year of transition and a market adjusting to changing economic realities, interest rate fluctuations, and ongoing supply challenges.

"Throughout 2024, the housing market experienced phases of steady price growth, largely driven by strong consumer confidence and a competitive mortgage landscape in the first half of the year which seen sustained market momentum.

"However, as inflationary pressures, fiscal policy changes, and mortgage rate adjustments have began to bite, the final months of the year saw a more cautious approach by prospective buyers and sellers.

"As the market enters 2025, we expect further market adjustments as affordability, interest rates, economic uncertainty and supply dynamics continue to influence buyer decisions.”

Ursula McAnulty, Head of Research at the Housing Executive, which commissions the analysis, said:  “The final quarter of the year is traditionally a slower period for the housing market. However, Q4 2024 witnessed a higher number of transactions than the previous quarter, and although there was a slight quarterly drop in house prices (3.4 per cent), annually house prices grew by (2.9 per cent) from Q4 2023 – signalling stability in the housing market in NI across the year as a whole.

"Looking forward, feedback from agents showed that 55 per cent expected market pricing would maintain at current levels and potentially increase; nonetheless, 45 per cent indicated that pricing levels would continue to be impacted by the reaction to the budgetary announcements, in particular the upcoming changes to employer national insurance contributions.”

Michael Boyd, Chief Executive of Progressive Building Society, said: “House prices in Northern Ireland saw a 2.9 per cent year-on-year increase, with mortgage market activity remaining resilient in 2024 despite the ongoing affordability challenges facing would-be buyers.

“A dominant feature remains the lack of new housing stock coming onto the market for sale.

"That didn’t change in 2024, with the last quarter marked by a slowing down of both buyer and seller activity.”