For many home owners the recent housing market has left a difficult financial situation. The massive boom in house prices post 2000 meant many people made a mint, selling their homes on for many times more than it was worth at the time of purchase. However, like any boom , it was inevitably followed by a slump. The economic recession; leading to decreased demand meant that many house owners found themselves in negative equity, and those on fixed rates could also be shouldering a heavy financial burden. The drop in house prices has also has left many people stranded, unable to sell their home as it they would make heavy losses by doing so.

But according to latest indications, the market looks set to be back on track; prices have now stabilised and mortgage availability is at one of the highest rates it has been in years. In October British housing prices dropped to their lowest annual fall since March 2008 and then registering a 1.2 percent rise from September, according to mortgage lender Halifax. This is the fourth successive monthly increase in house prices. If you are looking to sell your house, especially if it was bought in the 5-10 years then it may be wise to hold your horses. With markets set to rise, you could be kicking yourself in one or two years looking at what you could have received.

Likewise, if you are in the market to buy it might be the time to invest in some property, high competition and a scramble to get new clients has led to companies offering extremely attractive rates, and with the apparently bullish looking market it is possible buying a house could be an investment option to investigate.

The key points for buyers (especially first time buyers) would be the following:

1/. Are you looking at a long term investment on the property? If you are then it might not make much difference and it would actually be a much better choice to take your time and choose a house that is best suited to you. Likewise if you are in it for a short term choice or stepping stone to a different property now may be a good time.

2/. Are you in a stable financial situation? One of the main causes of the current financial crisis is that loans were so easy to obtain, then companies crashed having realised home owners did not have the ability to pay them back.

3/. Have you considered the other variables? Market strength is only one part of a much bigger picture. Investigating the full picture in the area you wish to buy is a key factor, crime, house type, transportation links, future developments in the area or government up and coming policy changes can all affect what, for many people, is the largest monetary investment they will make in their lives.