The number of newly-agreed property sales in Northern Ireland rose last month at its strongest rate since last summer - and house prices are also on the up.
But supply remains a problem and could put the brakes on the upwards trajectory, according to findings in the latest RICS/Ulster Bank residential market survey, which elicits the view of hundreds of surveyors.
A higher proportion of surveyors reported increasing sales activity in April than in any other UK region, the study says.
House prices in the north are also continuing to increase, according to the survey, as supply remains constrained, with new buyer enquiries continuing to rise at a faster rate than new vendor instructions.
Northern Ireland surveyors remain the most sanguine in the UK about house prices going forward, with a higher balance of respondents expecting prices to rise here in the three months ahead than in any other region.
RICS Northern Ireland residential property spokesman Samuel Dickey says: “Supply remains quite tight, with not a lot of properties coming on to the market, and this lack of supply, combined with rising numbers of people looking to buy is leading to rising prices, and the expectation of further rises in the months ahead.
"Surveyors also expect sales levels to increase, but until supply increases, it is hard to see any further significant growth in transactions.”
Derek Wilson at Ulster Bank added: “April was a strong month for mortgage demand, which has been rising steadily since the beginning of the year."
Meanwhile 10,066 social and affordable homes were delivered for Northern Ireland in the four years to March past, according to government figures - way above the 8,000 target set out by the Department for Social Development.
Of these, 6,101 are social homes, and 3,965 are affordable homes, with around £900 million being invested over the period.
“Not only has this investment delivered 10,066 homes, but it has helped support the construction industry and provided employment for many people through a difficult economic climate,” DSD minister Mervyn Storey said.
John McLean, chief executive of Fold Housing Association, said: "Housing associations here are leading the way in terms of developing additional new homes at a time of rising demand. We are expanding our service offering to support tenants with advice, employment assistance and community facilities.
“This is on top of the excellent housing, care and support delivered every day. Fold will have taken private borrowings to £100 million this year, helping to enhance communities as well as supporting the local construction industry. Indeed local associations have been developing proportionately higher numbers of new homes with less government grants than in other parts of the UK."
