The number of housing transactions has fallen by around 60%, according to housing research firm Hometrack.
The group latest National Housing Survey, published today, said that house prices fell by 0.8% in February, making a total house price drop of 10% over the last year.
However, this is an improvement from January’s fall of 1%, and Hometrack said there were some signs last month of increased activity in the market.
Levels of buyer registrations, sales agreed and new instructions all increased last month. Sales agreed increased by more than a third, and new buyers increase by 17%.
However, Richard Donnell, Hometrack’s director of research, said: “While the percentage increase in activity may appear relatively high, the underlying transaction levels of market activity are around 60% lower than they were a year ago.
“As such, this increase in market activity is off a very low base and falls well short of what could be classified as ‘green shoots’ of recovery.
“The fall in market activity and house prices in 2008 was largely a result of decline in market confidence and weak expectations. 2009 is a year when the housing market is at the mercy of the economy and rising unemployment.
“It would be dangerous to read too much into reports of improved buyer activity at present, as a broad-based recovery in the housing market will require a major turnaround in consumer confidence which is still some way off yet.”
