BY RONAN MCSHERRY

DESPITE a report claiming house prices have fallen in the Republic while rocketing in the North, an Omagh estate agent has said the figures may be misleading.

Figures released by the University of Ulster last week showed the average house price in the North has risen by a staggering 50%, or £78,000 in the last year. Meanwhile, in the Republic, new figures released this week show average prices have fallen by more than 9,000 euro (£6,000) - or three per cent-since January.

But, according to Omagh Estate Agent Darragh McLernon, local house prices over the summer have 'dropped back significantly.' While he acknowledged the house price fall in the Republic, he suggested it is 'not as much as people think.' Mr McLernon said, "Over the summer it is quiet anyway. With the rise in interest rates and the threat of other rises the feedback was that people were very nervous about coming forward."

INVESTORS

While there were have been a significant number of house sales locally, Mr McLernon stated that investors have been off-loading as they want their money out of here with prices having 'maxed out.'

He added, "They (investors) are trying to take the profit out of here to the North of England and the likes of Manchester, Newcastle and Liverpool. A lot of people were going to the North of England where they could buy two houses for the price of one. They would then let them out with the rent covering the mortgage as well as giving them extra return."

With the traditional summer period drawing to a close Mr McLernon said the market is gathering momentum again but a definite pattern has not emerged as yet. "I am not sure what way it will go. People have called to buy in recent months but were scared off by the interest rates. However, things have started to move again. For a while it was all very quiet but now the bidding and viewing is gathering pace again. This has been encouraged by the Bank of England saying there will be a freeze in interest rates by the end of the year."

While the University of Ulster survey showed the market was still buoyant, it only included sales up until the end of June. However, observers aren't yet predicting that prices in the North will fall as the survey suggests they have done in the Republic.