Northern Ireland Housing Market Update: Q3 2023
Pavilion Real Estate in Cookstown
14th November 2023
Commenting on the housing market, Jordan Buchanan, Chief Operating Officer at PropertyPal stated:
“Market activity continued to soften over the last three months as economic pressures and events of the last year became more apparent. Prices in the existing home segment of the market grew at a modest 0.6% over the past quarter, whilst new homes increased by 0.2%.
Newly agreed sales, a strong signal of economic confidence, fell by 15% compared to Q3 2022. However, the drop in transaction activity isn’t spread evenly across N.Ireland. Indeed, Mid & East Antrim, Lisburn & Castlereagh and Ards & North Down have experienced more modest declines of 7%-10%. Meanwhile areas including Newry, Mourne & Down and Mid Ulster have fallen by a more significant 25% in sales.
The relatively subdued activity has been expected given the Bank of England’s ongoing monetary tightening position and heightened economic uncertainty. However, of encouragement, market analysts have revised down the UK’s projected interest rate path amid signs of a slowing labour market and inflationary pressures somewhat easing as a result of the Bank's measures. This should continue to feed through into more competitive mortgage markets, supporting buyers borrowing capacity and boosting market activity in the medium term. A combination of stable labour markets, robust income growth and modest house price fluctuations may see affordability pressures ease in the coming months.”