A big drop in the number of homes entering the market, combined with renewed interest from buyers, may mean house price falls could be at an end by the turn of the year, Rightmove says.
Additionally, it says the number of new vendors had more than halved from 89,000 last January to 43,000 this month. However, it adds there had been 429,560 buyer enquiries in the first two weeks of January, compared with just 199,762 over the same period in 2008.
"The speed with which prices have declined has been worrying, but it does mean we are potentially reaching the bottom sooner," explains Miles Shipside, commercial director of Rightmove.
"One of the factors that will help to arrest price falls is a lack of property coming onto the market, resulting in lower inventory levels that align supply more closely with today's restricted demand."
He adds: "The reticence of discretionary sellers to come to market and the relatively low number of forced sellers have seen new listing numbers plummet.
"Add to this the collapse in the supply of new homes from developers and a massive shift of unsold stock to the lettings market, and the result is a dramatic reduction in the over-supply that has been present since early 2008."IFAonline
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