Northern Ireland property prices drop

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by Kay Murchie

After months of achieving new records, Northern Ireland property prices have dropped and the Belfast Telegraph has been informed by industry sources that those who purchased a property a few months ago may have lost money in the current market, igniting fears of negative equity.

One estate agent based in Ulster remarked that one more interest rate rise could hammer property price growth down to nothing later this year.

The quiet summer period, rising interest rates and more new houses being released are thought to be responsible for house prices falling by up to 7%.

Many estate agents in Northern Ireland say the record-breaking house price growth noted in early 2007 has steadied. However, many believe that the market will recover after the summer slowdown.

McGranaghan Estate Agents in west Belfast estimated that there had been a reduction in house prices in some areas of 5-7%. The previous 12 months saw increases in the same areas of 40-50% over the previous 12 months. The agent declared that the slowness of the current market is as a result of interest rate rises.

The estate agent predicted that autumn should see renewed confidence in the market and growth of around 8% is anticipated by early 2008.

A spokesperson for Ulster Bank echoed the agent and said that the market is in a state of instability but added that it may be good news for first time buyers.

Goldsmiths Estate Agents in west Belfast commented that it is a buyers market now, the days of making a 50% profit are long gone. He added that some sellers are having to accept offers below the asking prices.