HOUSE prices in Strabane are set set to rise dramatically, a local estate agent has predicted.
According to Eileen McGarrigle from Harte and McGarrigle Estate Agents, house prices in the local area will follow suit with the general economic outlook.
Figures released recently by PricewaterhouseCoopers (PwC) predict that house prices in the North will increase by four per-cent by 2022. If this comes to fruition it will see Northern Ireland recording the highest growth in the sector across the UK.
Overall, Eileen feels an increase in new builds in Strabane will lead to a rise in prices in coming years.
“The price of new builds in the Strabane area is generally higher than re-sales,” she said. “Last year, there were quite a number of new builds in the town which served to push average house prices up. I am in no doubt that house prices will rise by four per-cent by 2022.
“However, we have to remember we have a lower income in Strabane, so house prices will still be behind other areas, although buyers can expect an increase.”
With this, Eileen says such an increase could be bad news for first time buyers.
“A price increase could hit those thinking of buying (for the first time) in the future. In coming years, young buyers in particular need to be prepared for an increase in house prices, and need to be thinking now about their future borrowings and what kind of mortgage they will be able to get.”
The average price for a house in Northern Ireland currently stands at £128,000 and this is set to rise to £154,000 over the next four years.
Even if this happens prices here will still be around 28 per-cent less than they were at the peak of the housing boom in 2007.
Paul Terrington, PwC Northern Ireland chairman and UK head of regions said, “The Northern Ireland property market continues to perform better than expected, with a positive balance between earnings and house prices. But prices remain well below their peak level in 2007, and this gap is unlikely to close in the near future.”
‘We have to remember we have a lower income in Strabane, so house prices will still be behind other areas’