NI Housing Market Update: Q1 2023

Introducing the Q1 2023 edition of our Northern Ireland Housing Market Update, where we examine the latest trends and developments in the Northern Ireland housing market. This report offers a thorough analysis of market performance, providing essential insights for buyers, sellers, and industry professionals.

Jordan Buchanan, Chief Operating Officer at PropertyPal commented on the housing market:

The housing market commenced the year with a solid performance, exhibiting more 'normal' levels of activity reminiscent of pre-COVID-19 levels. While this may seem considerably slower compared to the last two years' frantic pace, the underlying data suggests a stable market despite prevailing economic challenges.

Market activity in January and February showcased a more cautious approach from both buyers and sellers, likely a result of residual efects from the economic turbulence in late 2022, including the mini-budget's volatile impact. However, as economic conditions stabilise and forecasts improve for the year, a notable uptick in home sales was observed in March. Indeed, sales during the month exceeded the pre-COVID-19 average by 4% and properties transacted approximately one week faster than usual.

Regarding pricing, properties that are accurately valued continue to attract significant interest, as evidenced by high levels of user engagement and enquiries to agents via PropertyPal. Over the last three months, average listed prices experienced a growth of 1.6%, or an 8.1% increase over the past 12 months. As broader inflationary pressures are anticipated to ease in the coming months, it is expected that house price inflation will also decelerate.

In relation to interest rates, stronger-than-anticipated inflation and wage data within the UK market might prompt the Bank of England to implement a further 0.25% base rate increase next month. Nevertheless, numerous lenders have already factored this in, and a more stable, confident lending environment has led to increased competition for business. Additionally, the robust performance of the labour market has also contributed to the housing market's resilience. A combination of these factors and a projected improvement in the economic mood, may see the housing market momentum continue in the coming period.

Thank you for reading! If you're interested in learning more about PropertyPal's market reports or need additional information on the Northern Ireland housing market, please reach out to us at [email protected]. A member of our team will be happy to assist you.

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