House Prices in the South are Heading North
It appears that rising house prices and a more stable economy are helping drag the South from its burden of Negative Equity. With prices rising by 9pc in the last year alone more than 45,000 homeowners have seen their properties leave Negative Equity.
According to the ESRI's housing analyst Dr David Duffy if property values continue to rise at this rate nearly every home in the South will be free of Negative Equity by 2018. However he warns that the level of borrowing and property values pre 2007 mean that many homeowners will continue to be left trapped by the shackles of Negative Equity.
So what does this mean for NI? With property prices set to rise on average by up to 11% this year alone it would appear homeowners in NI are well placed to escape the negative equity cycle, however forecast rises are regional and still down 43% from pre 2007 averages. Negative Equity is not going anywhere anytime soon.
Dr Duffy explains that, “The role negative equity plays is this. If you are in negative equity you are less likely to move because you don't want to crystallise the loss”. As a result it appears that the recovery in NI may leave homeowners behind as they live in fear of mounting debt.
For homeowners in Negative Equity the recovery in NI is a mirage on the horizon which they have little hope of reaching, however this does not mean there are no solutions available.
At GDP our Equity Experts have time and time again helped people who have felt trapped in their homes with no possible route of escape. If you’ve read this and feel like your case is beyond hope act today and give us a call.