Home owners have not had many reasons to be cheerful lately. The prices have been falling like a brick lately. Not many lenders are interested in mortgage or even remortgage applications. Buyers have literally disappeared from high street. Estate agents are closing down.

However there are a few signs to be feel optimist.

House prices are starting to stablise:
Prediction of green shoots of recovery are premature. However the fall in hoise prices is certainly slowing down. Although Nationwide Building Society reported recently that the prices rose slightly in March, that may be a seasonal factor as more buyers come out from in spring after a long winter than at any time of the year. Another property consultancy company (Lombard Street Research) thinks that the prices may bottom out by Deceber 2009.

Mortgage Approvals are Up:
Council of Mortgage Lenders report that the number in new loans approved in Feb was up slightly from the same month last year. Mind you, this increase is slight, from 23,400 to 24,300, but is there nevertheless. This may be because the banks are now recapitalised from govt funds (quantitative easing) and govt's proactive encouragement to banks to start lending - which seems to be working.

Interest rates are at historic low:
The rates have never been this low in the entire 300 year history of the Bank of England. The low rates have helped those on tracker mortgages. Those with fixed term mortgages but term coming to an end have been hugely benefited. This has helped their ability to pay mortgage, which has helped stablise the market.

However saying all that, housing market isn't out of the woods yet. These are just the signs of stabilisation, not a trend. A long term trend is the only true indicator. Rest is just gossip.

But this shouldn't stop home owners to start feeling optimistic for future.