Confidence returning as property sales highest since October 2007

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by Kay Murchie

There is further evidence out today that the housing market may be recovering after the National Association of Estate Agents (NAEA) reported that property sales in April were at their highest since October 2007.

According to the NAEA, the average estate agent sold 10 properties last month, up from 8 the previous month and a record low of 5 last August.

Commenting on the findings, Peter Bolton King, chief executive of the National Association of Estate Agents, said: “What we are beginning to see now are consistent positive indicators that have held firm or improved since the beginning of the year.

Six months ago people were talking about how British people’s attitude to owning property had changed in the recession. The NAEA always said that this was nonsense, and that demand for property remained strong, but confidence in the market had gone. These figures show that this confidence is returning, said Mr Bolton King.”

The news from the NAEA comes on the same day that property website Rightmove revealed that property asking prices are up for the fourth month in a row by 2.4%.

According to Rightmove, the average asking price of a home increased by £5,000 to £227,441, during the four weeks to May 9 - the largest percentage rise since May 2003 in the midst of the housing boom.

However, the group cautioned that as vendors see their equity dwindling away due to falling house prices, they may be pricing their homes at unrealistic levels.

Miles Shipside, commercial director of Rightmove, said: “The long-term worry is that the supply side of the housing market is now could delay the recovery of the housing market.”

In related news, the Royal Institution of Chartered Surveyors last week said that new buyer enquiries continued to rise in April - the sixth consecutive monthly rise and the fastest pace since August 1999.