Its research showed that sales rose 9.6% and 10.7% in July and June respectively, after an increase of just 1.6% in May.
The analyst said the increase in sales was largely down to a significant rise in demand over the last six months, which has narrowed the supply/demand gap to its lowest level for 18 months.
Hometrack said that the rise indicates that current pricing levels are “broadly sustainable”, with the proportion of asking prices being achieved remaining at almost 93% for the last six months.
While it said that the market appears to have adjusted to a low turnover environment, it noted that there is little scope for sellers to push prices higher.
It said that property prices likely to remain under downward pressure in the near term, with its analysis showing that house prices dropped 0.1% in July.
Nevertheless, improving sales volumes have reduced the average time on the market to 9.4 weeks in July from 9.7 weeks in June.
Richard Donnell, director of research at Hometrack, said: “The latest survey shows a housing market in broad equilibrium, with an increasing number of sales being agreed between more realistic sellers and a growing pool of buyers.
“Almost four years into the downturn, the housing market is showing signs of adapting to a low turnover environment.
“Despite a general improvement in the balance of supply and demand over recent months, headline prices remain on a downward trend and are likely to fall further over the coming months. Yet, with sales volumes holding up, there is no impetus for any material change in prices.”
Its house price index for July revealed that house prices continued to stagnate, falling 0.1% for the month following a 0.1% decrease in June. Annual house prices remain down 3.9%.
Significant regional variations in house prices continue, with average prices up 0.3% in London and East Anglia, but down in all other regions. The South West recorded the largest fall in July of 0.6%.
Overall, 27% of England and Wales saw house prices fall, with the South East and South West regions accounting for 40% of the areas posting price falls.
Donnell added: “The improvement in demand over the last six months has come as something of a surprise but this in part is down to pent up demand slowly feeding back into the market.
“Four years into the downturn and there will be a growing volume of buyers looking to move. For those in secure work, with equity in their home and the ability to access finance, low interest rates are combining to make a move an attractive proposition.”
