For the first time since December 2007, Nationwide have reported that house prices have risen for the last three months. June 2009 saw a 0.9% increase on house prices, with May also having a 1.3% increase. Whilst house prices are still down on last years prices by 9.3%, this is a reduction on June's figure of 11.3%.
This has been seen as general stabilisation in the market place, although there are still concerns regarding the low number of mortgage approvals and the amount of housing stock available. The low housing stock is partially due to developers and builders reducing the amount of units they make available in response to the economic climate.
Nationwide reports, whilst it is pleasing to see the continued stabilisation of the market, there are still obstacles before we see a full recovery, with low housing stock levels and high unemployment.
Overall, Nationwide summarise the report by stating that this is a positive turn for the housing market, and one that was not expected at the start of the year.