Click to enlarge photo LONDON (Reuters) - House prices fell at their weakest pace in over a year in the three months to October cushioned by a surge in new buyer enquiries, a report said on Tuesday, a sign that the market may be emerging from a year in the doldrums. The Royal Institution of Chartered Surveyors said its closely-watched house prices balance rose sharply to -9 in October from -21 in the three months to September, with prices in London showing their first increase in almost 1-1/2 years.
RICS said the Bank of England's August quarter-point interest rate cut had helped to engineer the biggest rise in new buyer enquiries in nearly two years.
But it cautioned that demand was improving from a very low base and did not signal a strong revival.
"The return to more balanced market conditions is welcome, though negotiations between buyers and sellers remain hard, and over-priced property continues to remain unsold," said RICS spokesman Jeremy Leaf.
"A return to boom conditions is not at all evident."
Completed sales rose for a fifth straight month. The sales to stock ratio rose to 30.7 percent from 30.0 percent in September although it remains well below the long-run average for 37 percent.
Confidence in the market remained below long-run levels and completed sales, while up from a trough carved early this year, are still 5 percent lower than a year ago.
Surveyors expect prices to rise modestly in seven regions over the next three months although RICS also noted that valuations remain an obstacle. "Surveyors continue to note the problem of over-priced property attracting little interest and remaining unsold," the report said.
