It has been forwarded by property Valuation Company QV that in the month of July, property prices increased for the third month in a row - after the nation-wide 12-month decline in values to 5 percent.

The past month saw a hike in countrywide values by 0.7%, based on the QV index. They were up 1.3 percent from their lowest in April.

QV said: "Given the recent increase in values, the negative annual change was due to declining house prices throughout 2008. The 5 percent annual fall for the country as a whole in July compares to a fall of 7.1 percent the previous month, while the national average sale price rose to $382,758 last month from $378,535 in June."

It added that though volume of sales was above the historically low levels of last winter; however, they were still below the long term average.

"This increased number of sales continues to be driven by the affordable end of the market as more investors and first home buyers return to the market," said QV.

According to QV Valuations manager Glenda Whitehead, a rise in values was seen in the middle value range, even when activity had increased at the lower end of the market.

She concluded: "In some areas there is a shortage of quality properties for sale, resulting in increased competition amongst motivated buyers. This may be driving a short term increase in sales prices."