Average house prices remained the same in May, the first time in 20 months that they did not show month-on-month falls, according to housing intelligence group Hometrack.
It reports that in England and Wales, only 13% of postcodes reported declines compared with 58% in January and 70% last autumn.
It cites greater sales volumes, growing buyer interest and fewer properties for sale as the underlying reasons for the boost in market confidence.
The number of potential buyers increased by 6% during the month and by 21% in the last quarter, while the number of agreed sales rose by 9%.
Says Richard Donnell, Hometrack’s director of research: “While prices remain unchanged over May, the outlook for the housing market remains fragile with a number of factors that could well de-rail the recent pick up in market activity.
“Given the weak outlook for the economy, house prices are expected to remain under downward pressure for the foreseeable future.”
He warned that despite glimmers of hope, it is too soon to predict a recovery in the market.
Copyright © Press Association 2009
