House prices: Property supply and demand balance turns 'positive' Across southern regions it now takes less than two months to sell a house on average, although across the Midlands and northern regions it still takes over 10 weeks, and the average selling time in the East Midlands is 13 weeks. The North East was the only region across England and Wales to see prices dip month-on-month in April, recording a 0.1pc decrease. The company also said the underlying house price trends over the coming three months were led by the balance between supply and demand, adding: "For the first time in three years the supply/demand balance is moving into positive territory." See the third chart below A Hometrack spokesman said: "The new supply of housing for sale is failing to keep pace with demand. Over April agents reported just a 2.8 per cent increase in new homes coming to the market. In each of the last three months the growth in supply has failed to keep pace with demand and this is providing strong upward pressure on pricing particularly in those markets with the shortest selling periods. Would-be buyers are often sellers, and respondents to the survey report that many potential purchasers are delaying putting their property on the market until they find a home to buy. These households are also waiting for signs of a sustained housing market recovery before registering with an agent to sell. Together these two factors are boosting demand while keeping supply scarce. Hometrack also said the Government's Funding for Lending scheme was making credit more available. However, Land Registry data for March showed that house prices were essentially flat, rising by just 0.1pc during the month. "It is hard to see what will generate price rises, but in the absence of a major shock they are likely to hold their ground," said Capital Economics, the consultancy. Separately, the price of land sold for residential development edged higher in the first three months of the year in England and Wales, according to Knight Frank, the estate agent. Prices were 0.2pc higher in March than a year previously, the company said. "In terms of demand, recent political developments could provide a boost to the market in the coming years," said Gráinne Gilmore, Knight Frank's head of UK residential research, referring to schemes such as Help to Buy, which helps property buyers get competitive mortgages. Sign up for our weekly newsletter Charts from the Hometrack report Why estimating supply and demand is a dangerous game