Market confidence in the future rise in home prices is returning as buyer sentiment hits all-time high, the latest data from Halifax reveals.
Both buyers and sellers are very optimistic in their outlook, but buyer confidence has reached the highest level on record since the Halifax launched its Housing Market Confidence Tracker in 2011.
Buyer sentiment in February was at +35 and the index of seller’s confidence hit a level of +27.
The rebounding optimism in February, reflected in the confidence tracker, is seen as a result of to the continued drop in inflation and the receding expectation of an interest rate rise in the short term.
The Halifax House Price Index, released today, showed an increase in housing prices for January-March 2015, by 2.6 per cent compared to the previous quarter and by 8.1 per cent compared to a year ago.
While demand is growing, supply remains low. According to the latest monthly report by the Royal Institution of Chartered Surveyors (RICS), new instructions fell again in February after a modest increase in January, which was the first one in six months. The drop in February suggests that the trend is likely to remain down.
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