Rise in house sales 'to continue'

House sales have increased during the last three months and are expected to rise further, according to a market survey.

Despite this, prices are expected to remain static or fall because of economic uncertainty, public spending cuts and the possibility of rising interest rates, said the Royal Institute of Chartered Surveyors study.

Keith Mitchell, senior partner at Belfast estate agents Templeton Robinson, said sellers needed to be realistic about prices.

"Prices went up by 50% and came down by 50% and it has taken a while for the market to accept that," he said.

He added a lot of old houses had been on sale but not reduced their prices or done so slowly. New builds were being sold at more realistic levels and in some cases there were even bidding wars.

"People are obviously now a bit more cautious. A lot of the attention has been around headline points which can exaggerate the realities in the market," said Mr Mitchell.

According to the RICS survey, in April most said the number of sales increased during the last three months and was expected to continue rising in the three months ahead.

RICS Northern Ireland housing spokesman Tom McClelland said: "It is clear that the housing market in Northern Ireland remains in a transitional phase.

"Whilst prices are continuing to fall in some sectors and areas, other areas and property types seem to be more stable and to be experiencing higher demand.

"Overall there will continue to be headwinds during the remainder of the year with economic uncertainty, public spending cuts and the likelihood of rising interest rates later in the year for instance."

1 Comment(s)

by Noel Crean on 15th July 2011
I see little evidence of the 50% drop you refer to especially in my area of Newcastle and mourne and the increase in sales are mostly down to investors and not the ordinary public. Its time to introduce a little honesty into these comments. I sold a detached bungalow in Seaforde six years ago at Ј145000 and its currently back on the market at Ј227000. We are still being ripped off with greatly over valued prices. The real evidence is out there if you look for it. The property market is still not being represented fairly. To all the people out there who paid far to much for their properties during the so called boom you are not going to get the money that you pain no matter how long you wait. Why should the rest of us who did the right thing pay for your mistakes. Time to put the interest rates back up and give the savers and pensioners some money back in thier pockets. We have has substantial losses over the last two years.

propertynews