In February relative to January, a net balance of 28 per cent of respondents based in Northern Ireland said that there were more new buyers active in the market. This represents the fourth consecutive month that the net balance figure has been positive. Due to this expectations for home sales increased to their highest level in over three years. In three months' time, a net balance of 54 per cent of respondents expect sales to be higher which is the strongest the net balance has been since January 2021.
Price outlook has further improved with 49 per cent of respondents anticipating higher prices in the coming three months, marking the highest expectation level in nearly two years. This follows a consistent trend of firm price growth observed in recent months, with 53 per cent of respondents reporting price increases in the three months leading up to the end of February.
The availability of properties stands out as a potential obstacle to sales growth. Although there was an uptick in new instructions to sell reported in February, there remains an imbalance in comparison to demand. While a net balance of 9 per cent of respondents noted an increase in new instructions last month, this figure pales in comparison to the 28 per cent reporting an increase in new buyer enquiries
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Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, said: "As we move into the Spring months, demand for house purchases is increasing and we expect to see more sales going through. For the large part, in our experience, these are going through at asking price or above, with some instances of parties bidding against each other. There is no doubt that lower mortgage rates are helping. But there is still a shortage of properties coming onto the market. In our experience, there is a particular lack of family homes, creating a challenge for those hoping to upsize."
Terry Robb, Head of Personal Banking at Ulster Bank, added: "With house prices continuing to rise in Northern Ireland, we know that affordability continues to be a challenge for some, particularly first time buyers. Ulster Bank is committed to helping first time buyers meet their financial goals and enabling them to achieve home ownership, particularly for segments of the market for whom home ownership has felt far out of reach in recent times. We know that sustainability also remains important for customers, but that cost remains a high barrier to homeowners when making sustainable changes and that’s clearly unsurprising given the significant increase in cost of living. There needs to be a change in making the options more accessible to our customers and wider homeowners. Our own data shows that homeowners are keen to make greener changes but are halted by these barriers – our ongoing research into consumer attitudes has helped inform our understanding in developing products that might assist in the process, as well as our engagement with Government. It is key that we support customers financially, so they are not held back from boosting demand for energy efficient products and services."
