THE housing market is heading for a modest autumn revival as fears that prices will fall recede, research shows.
About 48% of people now expect property prices to rise over the coming 12 months, compared with 45% who think prices will fall, according to Propertyfinder.com.
Overall househunters expect the average cost of a home to edge down slightly by 1.6% during the next year.
The group said people's confidence had slipped slightly since July as a result of negative economic news, such as rising oil prices and weak consumer sales, as well as the usual seasonal slowdown.
But it added that sentiment was still well ahead of the levels recorded during 2004, suggesting housing market activity will continue to recover from the weak levels seen at the beginning of this year, although prices will not necessarily rise.
The traditional summer slowdown hit activity in the market during August, with the average time it was taking to sell a property rising from 10.7 weeks in July to 12.5 weeks in August, while sellers were prepared to accept offers that were 4.9% below their asking price, compared with 3.5% in July. There was also a slight fall in the number of people who began looking for a new property during the month.
Jim Buckle, managing director of Propertyfinder.com, said: "We have not changed our view that a modest revival in the housing market is set for the autumn, although economic events have caused us to moderate our view of the likely upturn.
"With househunters expecting broad price stability in the housing market, there is no disincentive for people to move house and with interest rates having peaked, there is no need to fear sharp increases in mortgage costs."
