House prices in Northern Ireland continue to tumble, with the average value of a home dropping below £150,000 for the first time in five years.
The latest snapshot of the region's property market recorded a 7.6 per cent drop in prices from the same time last year. The average overall cost of a home is now £148,243, according to the University of Ulster Quarterly House Price Index.
The survey, compiled in conjunction with the Bank of Ireland and the Northern Ireland Housing Executive, found the signs of a slight market recovery earlier this year had been put on hold, or even reversed.
Co-author of the report Professor Alastair Adair said: "The significant fall in house prices stems from a current lack of confidence in the market possibly reflecting concerns about public spending cuts and their impact on jobs in a region highly dependent on public sector employment."
Prof Stanley McGreal and Dr David McIlhatton worked with Prof Adair in compiling the survey.
The statistics are based on 795 transactions in the third quarter of 2010, a figure well down on the second quarter volume of 1,009 transactions.
"Potential buyers remain discouraged by uncertainty over economic prospects and in terms of supply there is no shortage of houses available to buy or to rent," said Alan Bridle, UK economist at Bank of Ireland. "A particular theme of this survey is that the previously resilient market in Belfast has been less strong in the third quarter - and turnover of properties remains weak by historic standards."
More than a quarter of houses surveyed sold at or below £100,000, with nearly two thirds costing £150,000 or less. Belfast experienced one of the most dramatic slides, with prices falling by 21.7 per cent over the year to £138,131.
In the traditionally affluent North Down the average price of a home is now £179,263 - down 11.7 per cent over the year.
In terms of property type across Northern Ireland, the price for apartments fell by 17 per cent over the year to £119,716, for semi-detached houses it was down by 12.5 per cent to £130,956, for detached houses by 7 per cent to £252,581 and for terraced/townhouses by 5.6 per cent to £107,407.
Semi-detached bungalows rose by 10.6 per cent to £131,439 and detached bungalows increased by 4.2 per cent to £195,636.
The Housing Executive's head of research, Joe Frey, said it was no surprise that the housing market was falling, given the fragility of Northern Ireland's economy and imminent cuts in public expenditure.
"However, despite the resultant lower house prices, affordability will remain a difficult issue for first-time buyers for as long as banks and building societies continue to allocate mortgages on the basis of very restrictive lending criteria."
PA