As we enter the third quarter for 2009 there are encouraging signs that the property market is improving,albeit  quite slowly and that we may be entering a period of relative stability.

Any market is always driven by supply and demand and the housing market is no exception.

Starting in July and continuing through into October an increase in the number of enquiries coupled with a shortage of properties coming to market has led to a positive swing in the prices we see being realised.

Interest rates remain at an historically low level and look set to continue do so for the immeadiate future,making it easier for homeowners to service the debt on their properties.Consequently less distressed sellers have been seen in the market and thus less available properties. At the higher end of the market we have seen up to 4-5 potential buyers lined up for good quality properties in desirable locations.Realisticaly marketed  these properties have been achieving very solid prices.

It is important to recognize however that we are not yet out of the recession,indeed recent figures have shown that economic output is down for the sixth quarter in a row.The implications of this are that unemployment looks likely to continue to rise,the knock on effect to the housing market being a potential increase in the number of repossesions.This would impact on the balance of supply and demand,more properties being made available and a consequent dampening of the recovery.

The most indepth analysis of the property market will always,by definition,be based on generalities and trends.There is no subsltitute for  local up to the minute knowledge of what properties are coming to market how they should be priced and  what the  financial situation of the vendors may be ,to underpin a successful negotiation and purchase.

As with all economic forecasts there are often contradicatory messages to be gleaned and there is no guaranteed predication as to which way a market will travel.Until unemployment has stabilised and we look to be well clear of the recession cautious optimism remains the wtachword of the day with a broad consensus of a more stabilized and robust property market.