Galloping house price inflation in Northern Ireland has slowed as interest rate increases begin to bite and more new properties come onto the market, it was revealed today.
The latest study by the Royal Institution of Chartered Surveyors (RCIS) and the Ulster Bank said it was also taking longer to get a property sold.
Those who invested in property are also selling up in increasing numbers to put their cash into less inflated housing markets. However there is no reason for house sellers to panic - they said there was still strong price growth -though not at the massive rates of last year.
Price growth in the North last month was still the fastest of all the regions of the UK. RICS Northern Ireland residential property spokesman Tom McClelland said: "The residential property market has changed considerably in the last quarter.
"We have moved from a situation earlier in the year where houses were selling in a matter of days and often for 25 per cent or more above their asking price, to one now where by-and-large houses are achieving asking price or moderately above and where sales are frequently taking weeks rather than days."
He said evidence suggested house prices will grow moderately in the coming months. "We now have a clear trend of slowing house price inflation, which is probably going to continue in light of recent and likely interest rate rises."
The Northern Executive was currently positioning itself to deal with Northern Ireland's considerable housing affordability crisis, he said.
The RICS would continue to engage with relevant ministers in the coming months to ask for support measures and interventions to increase the supply of affordable homes to allow first time buyers and those on lower incomes to enter into homeownership.
The Institution said 40 per cent of chartered surveyors responding to the survey reported price growth of between 0 per cent and 2 per cent in June, with 30 per cent recording inflation of over 2 per cent.
Another 21 per cent reported prices remained the same during the month and just 9 per cent experienced moderate falls.
June was the third month in a row in which house price inflation cooled and compared with March when 75 per cent of chartered surveyors recorded inflation of at least 5 per cent — the high watermark for price growth.
Ulster Bank head of mortgages, Derek Wilson added: "Price inflation is being supported by a relatively buoyant economy and jobs market, but the rate of growth is declining due to an increase in the supply of new build homes coming to market, the increasing costs of borrowing and the fact that investors are selling up in increasing numbers in order to invest in less inflated housing markets."
He said that with the continuing interest rate tightening cycle and with local house prices so high it was now more important than ever for homeowners to ensure that were getting the best mortgage deal available to them.
PA