A degree of normality is returning to the residential house market after the dramatic market slump in the past three years accorded to leading South Down Agent Best Property Services but ironically, housing shortages look likely for late 2010.

Residential sales agent Siobhan Philips says houses are selling again, albeit in smaller volumes than in previous years. “Property is moving towards some sense of normality. Looking at some of our recent sales figures over a two month period we saw that 77% of the resales we held, sold within 50 days on going onto the market and that half of those where sold at or above the guide price, with the rest within 5% of the guide. Interestingly we also sold twice as many properties in 09 as we did in 08,” Siobhan says.

While that is certainly an indication of a step in a positive direction, the increase in transactions hasn’t prompted any significant change for the construction of new homes which could result in shortages in housing supply.

“In Newry, most of the stock of built houses has now been sold, with very few properties on the market. It’s likely that there will be a period of short supply in residential housing while housebuilders adjust to the new demand levels – coupled with the fact that development land within the city is scarce.

 “What I would expect to see is a shortage in the starter home sector of the market in late 2010 and early 2011. The degree of this will depend on the banks response to the changing conditions in terms of funding, and the speed with which developers adjust,” Siobhan adds.

 This situation in Newry is in marked contrast to comparable locations across the border, where there is still a significant excess supply of housing stock.

FOR PRESS INFORMATION CONTACT CATHERINE MCGINN AT MAC PR, tel 028 4173 9017 or mobile 077 2029 4413. www.macpr.co.uk