HOUSE prices jumped by 1.2 per cent during the first week of January as new sellers put up their asking prices, research has shown.
The steep rise in asking prices during the early days of 2010 helped the average cost of a home in England and Wales increase by 0.4 per cent during the five weeks to January 9 to £222,261.
A property website said the housing market had got off to a “buoyant start” this year, as record numbers of people logged on to its website, with volumes up 26 per cent compared with the same period of 2009.
It also estimates that the stock of homes for sale is currently at its lowest level this century, suggesting that the mismatch between supply and demand will continue to push up prices in the short term.
The latest increase, which followed two months during which the cost of property had fallen, left the average asking price 4.1 per cent higher than at the beginning of January 2009.
A spokesman said: “This rise in asking prices is an early indicator that new sellers in 2010 have the confidence to try for a higher price.
“We were expecting a drop of about one per cent as the majority of this month's index falls in December, but the optimism of those early January sellers flipped it around.
“Low stock levels are normally associated with house price booms and prices would have fallen considerably further but for the unique combination of circumstances that has kept stock off the market.
“Buyers have little choice in popular areas, and while this continues, sellers have a window of opportunity to obtain a higher price and a speedier sale.”