Developers are starting to raise prices on distressed housing stock sales – the first sign that the housing market is reaching the bottom, says Assetz.
The property investment company says house prices at auctions have also started to settle since the new year.
The company said it believed the distressed property market had recently passed its lowest point in terms of reaching the lowest possible price for buyers of residential property.
“Many housebuilders are running out of completed stock, while others are successfully renegotiating their banking covenants, taking some of the pressure away to sell at prices well below cost of build,” the company said.
It said house-price indices, which show house-price falls ranging from 10%-16% in 2008, will continue to show falls for some months to come, but these indices were significantly delayed in terms of data capture – by as much as three months.
Stuart Law, chief executive of Assetz, said: “If the distressed property market had a house price index, it would have already reached the bottom and there are clear signs that these prices are beginning to turn upwards.
“There are multiple bidders for much residential distressed property – an early warning indicator that the wider market trend will change in the near future.”
