Investors drive rise in sales activity in Northern Ireland

Investors and first time buyers are driving an increase in sales activity, according to chartered surveyors.

The latest RICS and Ulster Bank Housing Market Survey shows a continuing increase in transactions volumes, with expectations of further increases in the months ahead.

A net balance of 50% of respondents to the survey said that transactions increased in the three months to the end of April.

A net balance of 58% said they expect transactions to increase in the three months ahead: May, June and July. (August 2012 was the last month the survey reported falling transaction volumes.)

In terms of prices, the net balance was -33 (7%t of respondents saying that prices rose in the three months, 54% saying they remained the same, and 39% saying they fell.)

The outlook for prices is more positive. A net balance of 17% expect prices to rise over the May, June, July period (83 per cent expecting prices to remain the same and 17% expecting them to rise.)

Transaction volumes have been gradually rising, which is welcome news. Seasonal factors are clearly playing a role, as well as a seeming increase in confidence amongst investors and first time buyers. We remain of the view that there will continue to be seasonal adjustments, and that 2013 will see an underlying trend of easing price falls and modestly improving transaction volumes.

RICS Northern Ireland spokesman, Tom McClelland