The housing market remained flat last month according to data released today by the National Association of Estate Agents (NAEA). The change in average property prices was less than half a per cent both over the last year and the last month, illustrating the continuing stabilisation of the market.

 Although the annual change was a dip from previous increases, the monthly figures represent a return to positive growth following seven months of decreases last year. This dismisses speculation of a crash and would instead appear to indicate that the housing market is merely adjusting to a more realistic pace of growth following several years of boom.

Estate agents across the country reported a busy month, with the highest number of sales agreed since last summer. There were also plenty of new instructions, maintaining the number of houses available at record levels. However in comparison the buyer shortage continued, with numbers down significantly on the previous year. This imbalance fuelled the buyers’ market and meant those who were buying were able to secure discounts of on average 4.3% from the asking price.

Hope for first time buyers?

The percentage of sales made to first time buyers also fell again last month, from 11.7% to 10.1%. It is hoped that the Chancellor’s concession to amend the minimum stamp duty threshold from £60,000 to £120,000 in last week’s Budget will ease the financial burden for many potential property purchasers. This could result in an increase in the number of first time buyers in the market over the next few months, although will do little to help those in more expensive areas such as London and the South East where prices continue to rise.

Readjustment

Richard Hair, President of the NAEA, comments: "We are seeing a readjustment taking place in the housing market at the moment. Vendors are appreciating that realistic and flexible asking prices are achieving sales and buyers are recognising that they are not going to be able to hold out for a crash in prices. This is finally leading the two to meet in the middle, and as a result we have seen the number of sales return to levels not seen since last summer."

"The data shows that house prices have stabilised, but with month-on-month changes once again positive and the balance returning to the market, an Easter revival seems almost certain."