HOUSE prices in Northern Ireland have increased by almost 10 per cent in the past year to leave the cost of an average home at almost £200,000.
The second quarter of 2021 has also seen the highest volume of house sales for almost two decades.
The Ulster University research, produced with the Northern Ireland Housing Executive and Progressive Building Society, analyses the performance of the housing market during the second quarter of this year - April, May and June.
Reseachers said the psychological effect of the Covid-19 pandemic on the housing market was "truly discernible with the race for space clearly evident."
The Quarterly House Price Index report found the overall average house price is now £195,242 - an increase of 9.2 per cent in the past year and a 2.8 per cent increase from the first quarter of this year.
There were 4,138 transactions in the quarter - the highest volume recorded in the index in almost two decades and higher that during the 2006-2007 housing boom. This was up from 2,829 in the first quarter of 2021 and the 570 in the second quarter of last year during the lockdown.
Lead researcher, Dr Michael McCord said the "psychological effect of the Covid-19 pandemic upon the housing market is well and truly discernible, with the race for space clearly evident".
"Indeed, in the first quarter of 2021 we noted the increased competition amongst buyers, with viewings instantaneously translating into firm offers and trading up activity," he said.
The average price of a detached house is now almost £280,000, a semi-detached house will cost you more than £175,000 on average, an apartment is £143,000 and terrace houses are changing hands for £130,000.
Michael Boyd from Progressive Building Society said: "While the soon to be phased out stamp duty holiday has been an important contributory factor, further easing of restrictions and a better than expected economic outlook augers well for the market in the coming months with transaction volumes expected to remain consistent with the first half of the year.
"The longer-term picture, however, must account for the end of the furlough scheme with the NI Executive and the UK government playing an important role in leading the policy environment to support economic investment and drive consumer confidence."
Elma Newberry from the Housing Executive said: "The second quarter of the year saw an exceptional level of activity in the local housing market for a number of reasons including households wanting to trade up for more space."
