For the third consecutive month new sellers have raised their average asking prices, this time by 1.8% (£3,996). It could be argued that one or two months of rises is the result of traditional spring optimism and volatility caused by low volumes, but three months in a row and the largest rise for 14 months may indicate that we have finally reached a price floor and confidence is starting to return. Miles Shipside, commercial director of Rightmove comments: "My view is that many sellers are still starting too high, but the fact that they are coming to market in greater numbers and feel they can ask more shows a strengthening in resolve and confidence, which is an encouraging sign. It looks like we are now bumping along the bottom of the trough, but for there to be any real sense of optimism that we're on a sustainable road to recovery, the availability of mortgage finance needs to improve significantly, given that mortgage activity is currently running at around a third of its average levels between 2002 and 2007. Thankfully mortgage lenders are finally starting to release more funds to finance new house purchases."

Estate agents report a continuing increase in sales levels beyond the 19% uplift in mortgage approvals reported by the Bank of England for February, indicating that the trend of improving transaction volumes could continue, albeit from a chronically low base. Feedback from estate agents suggests that prices actually being achieved are still around 25% below peak prices in many instances, though quality homes in desirable locations perform better. Those parts of the country that have adjusted to the credit famine have found that prices have stabilised at around this level, giving substantial leeway for sales activity to increase if credit restrictions were to be relaxed.

Shipside predicts: "2009 will not see the triple whammy of recovery of confidence, the economy, and institutional lending. Some sellers are doing deals at prices that have adjusted to the new reality, though there also remain some real property black spots of overpriced supply outstripping recession-dimmed demand. Those less desirable and harder hit areas will lag well behind in the recovery given the new era of financial prudence, and those that have to sell must be even more realistic."

Another sign of returning confidence is the increased number of new sellers tempted to market in the last month. Whilst still down 19% on April last year, at 22,260 per week it is 13% up on last month. With repossession numbers still muted due to lower mortgage payments and mortgage lenders' ‘Pre-Action Protocol' to keep borrowers in their homes, this shows a genuine return of discretionary sellers deciding the time could be right to do a deal. As a result, average stock per estate agency branch has risen from 71 to 72. However, with a lot fewer agents in business than last year and reduced levels of new build, the overall number of properties available remains at historically low levels, underpinning initial asking prices. It is possible that both this price support and lower inventory levels are the result of a paradigm shift in potential seller behaviour, due to a significant percentage being deterred by the upfront costs of a Home Information Pack Shipside observes: "With only 38,000 mortgage approvals recorded in February, it will be a real challenge for mortgage lenders, including the Government-owned institutions to satisfy the mortgage needs of both these 111,000 new sellers and those who are already active in the market."

A fall in time-on-market is further evidence of the spring bounce in sales activity reported by many agents. This has fallen from 81 to 77 days. The length of time to sell could be further reduced by sellers launching their property onto the market at a lower initial price, rather than reducing it after a few weeks when no buyers have appeared. Whilst Rightmove web traffic analysis shows reducing the asking price generates renewed interest, the initial marketing impetus of a "new to market" property has been lost. Rightmove is seeing around 16,000 asking price reductions of 2% or more each week. These might be a reflection of misplaced seller optimism, a fall in local buyer demand or increase in property supply, or a change in a seller's personal circumstances that require an urgent need to market more heavily and be ready to do a deal.

Shipside adds: "As a reflection of these circumstances and current market conditions, Rightmove is to launch Property Deal Weekly on the 21st April. The online magazine format will automatically select and highlight any asking price reduction of 2% or more from the previous week and send it to home-hunters who register to receive it. No doubt bargain hunters will be keeping a keen eye out for the largest reductions, as once a property has gone stale it normally needs a big reduction and a big push to regenerate buyers interest. The best advice for sellers is to price lower at the outset to tempt buyers right away, rather than having to go through months of frustration and the desperation of a major price slash".

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