This is an interesting spring for the housing market.

For every negative indicator, there is usually a more positive one and, while conditions have clearly improved in comparison with the panic of last autumn, housing is still adjusting to the higher interest rate environment. That adjustment is still underway.

One positive in recent days came with the news that consumer confidence, while still at historically low levels, is on the up.

The closely watched GfK consumer confidence index rose six points this month, its third increase in a row. Every measure in the index showed a rise.

Perhaps most significant for the housing market was a rise of eight points in how people see their personal financial situation over the next 12 months, and an increase of five points in the major purchase index, which measures whether respondents see this as a good time for a big purchase.

“There’s a sudden flowering of optimism with big improvements across the board,” said Joe Staton of GfK.

“The eight-point jump in how we see prospects for our personal financial situation is a dramatic change that might suggest household finances are stronger than we thought.”

This is good news, coming as it does before the cost-of-living squeeze is over.

It may reflect the fact that the winter was not as bad as feared, so a collective sigh of relief.

Source: Property Notify