Both buyer enquiries and sales increased throughout May, but analysts remain hesitant to call the bottom of the market.
According to the Royal Institute for Chartered Surveyors (RICS), agents have now reported an increase in new enquiries for seven consecutive months.
Similarly, the average number of properties sold by estate agents over the past three months rose from 10.6 to 11.8, while 40% more agents say they expect sales levels to increase, the highest figure in the survey's history (1998).
Only 11% more surveyors are expecting prices to fall rather than rise, compared to 42% last month and represents the best reading since July 2007.
At the same time, the net balance of surveyors reporting a fall in house prices rose from a negative balance of 58.7% to 44.1%.
Not out of the woods yet
Yet despite all the positive news, RICS spokesperson Ian Perry is hesitant to claim the market was now in recovery mode.
Rather, there are a number of key obstacles that must be overcome first, adds Perry.
"On the face of it, the housing market does appear to be close to bottoming out with activity picking up in a material way and prices at last stabilising,” he says.
“However, it is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand.
“Moreover, with the economic backdrop still quite uncertain, unemployment is set to continue increasing sharply and finance for first time buyers is still in short supply, there are a number of significant obstacles for the market to overcome over the coming months.”
