Two charts, one housing market.
The first looks at net mortgage lending. There has been a slight pick-up in activity, but overall things are down compared to the 18 months ago.
The second chart tells a happier story. Over the last three months, the net flow of mortgage lending for home purchases is up 28 percent. It is an impressive recovery, don't you think?
So is the housing market on the verge of recovery?
For the government and the Bank of England, house prices are the number one priority. The housing market has received unprecedented support from the state in the form of guarantees and liquidity support. We may be seeing the first signs of a recovery.
If a prices are about to turn, the surge won't be a gentle one. Interest rates are dangerously low, and once people again begin to believe that house prices can only go up, we will see an apocalyptic and uncontrollable bubble.