Property prices for residences in the UK rose during the month of March, the first such increase in 16 months. The Nationwide Building Society monthly housing price index showed an increase of 0.9 percent for the month, the first increase since October, 2007. The price of an average home rose to just above £150,000.

 

While the rise in prices is certainly good news, economists don’t expect it to continue, at least until the credit crisis is sorted out. Nationwide’s Fionnuala Early, the chief economist, was cautious in her comments. “It is too early to say that we are reaching the trough. It is never wise to put an emphasis on one month’s figure,” she said.

 

While prices did rise, transaction levels are still low and consumers are still worried about the economy. While the increase is certainly a good sign, “It is still too soon to say that this will be the beginning of sustained house price rises and a reflection of a wholesale return of confidence to the market,” she added.