More Signs Of Recovery In NI Housing Market?

There are more reported sign of recovery in the Northern Ireland housing market today, after a local estate agents said it was "officially" selling again.

The announcement has been supported by chartered surveyors across the province, who have predicted sales will increase next month.

Estate agents have been among those worst hit by the 30% drop in house prices in the last year.

Confidence in the market dropped, transactions slowed, and the downturn was later compounded by a lack of available credit in the banking system.

According to the Royal Institute of Chartered Surveyors' quarterly house price survey, sponsored by Ulster Bank, potential housing buyers are beginning to reemerge, amid a continued reduction in house price falls.

Low interest rate and lower prices are said to the main stimulants for the suggested signs of a turnaround.

However, some industry experts have conflicting views on the immediate future of the market.

Halifax reported a 1.6% rise in house prices nationally in January, but the mortgage lender said quarterly figures were still down 5.1%.

The RICS said 51% of surveyors reported a fall in valuations last month compared to 91% in October 2008.

"Buyers will be back to pick up bargains, so a rise in inquiries is not unexpected given the extent to which prices have fallen to date," said the Institutes's NI spokesman Tom McClelland.

"With rising inquiries, historically low interest rates, vastly improved affordability and the fact that the worst of the price correction is behind us, increasing sales levels in the months ahead would also not be a surprise.

"One feature is likely to be the re-entrance of some investors to the market, anticipating that there are bargains to be had," added Mr McClelland.

Meanwhile, a local estate agent has revealed 75 properties were sold by its staff in the last five weeks.

Templeton Robinson said the homes were sold in around Belfast and the north Down area.

(PR/JM)