Mr Keith Mitchell, a founding partner in Templeton Robinson has recently dismissed economic predictions that there are further falls to come in house prices in Northern Ireland.

Mr Mitchell states that UK wide housing prices should be on the whole ignored by potential house buyers, worried that this may further damage the already fragile confidence in the housing market.  As reported in our story on 5th February, the announcement of small rises in property prices restored some much needed confidence.  Many are pinning hopes on these small signs of recovery.

Although financial experts predict further falls, Mr Mitchell say’s that we cannot compare ourselves to that of England, Scotland and Wales, where prices rose steadily over a longer period of time and will therefore take longer to readjust.  Prices in Northern Ireland exploded in a short period and are now reducing just as quickly.  Mr Mitchell states, ”In our view there is therefore no basis to suggest our values will become further depressed.”

Templeton Robinson, having a number of branches in the Belfast and North Down area’s have reported 75 home sales over the last month, split equally between new properties and re-sales.  Mr Mitchell advises vendors to price there properties at the summer 2007 figure less about 30%.  He also advises potential purchasers that vendors cannot realistically be expected to reduce prices below this level.

Mr Christopher Pooler of Pooler Estate Agents, Belfast, states that the majority of his vendors have cut prices by up to 40%.  Whilst todays survey by the Royal Institution of Chartered Surveyors (RICS) will suggest that fewer surveyors are reporting falling prices, many in the industry remain sceptical.

Dr Graham Gudgin, a former economic advisor to the Assembly and now senior economic advisor at Oxford Economics, has stated that he believes Ulster prices would fall for about another year.  Fionnula Earley, chief economist at Nationwide Building Society, has also said that she expects house prices in Northern Ireland to continue falling this year.

As job losses and repossessions mount, I think its fair to say that most of us hope that Mr Mitchell’s predictions are correct and that the small signs of recovery witnessed over the last month are only the beginning of the propagation process.

Source: News Letter