With news of increasesÂ in house prices and an increase in mortgage approvals one might think the end of the bottom of the housing market has been reached. But are we looking at true stability? Or is this misleading data in a temporary flux that may pull buyers into a market with a long term downward trend?
Up until the beginning of this year the property market has been falling since 2007 when the credit crisis hit mortgage products with a severity that priced buyers off the housing ladder and increased the cost of a mortgage for many who coming to the end of fixed deals and needing to remortgage.
The Bank Of England's response to the economic crisis was to reduce interest rates to their lowest recorded level but only trackers benefited by this reduction whilst new fixed rate mortgage products did not react with such enthusiasm.
All this meant that the housing market was on what seemed to be a never ending downward trend. Then earlier this year prices began to level out and eventually rise to retrace some of the lost ground in prices and reports of recovery filled the news headlines in between stories of Peter and Jordan's marriage breakup.
With these reports coming in it would seem as though the crash had run its course. However if you sit back and look at the underlying fundamentals of this recovery in residential property the foundations are indeed very shaky.
Interest rates will go back up eventually and when they do there will be an increase in forced sales with more sellers placed in the unfortunate position of having to accept substantially lower offers on their family homes and leaving them with the potential of an overall loss and even paying back the debt on a property they no longer own.
If you add the public sector cuts that must take place next year and the ensuing unemployment, the future of many British families and their home ownership dream will be shattered.
So what will be the signs of stability in the housing market?
Once the public sector cuts have done their damage and unemployment has topped and falling, that will be one feature of stability, the other will be interest rates returning to a natural level with real economic growth to back it up.
It is at that point lenders will position themselves to retake as much of market share as they can with mortgage products that are affordable to the average man and woman on the street who are currently still priced out of the housing market due to excessive deposits required for fist time buyers.