Its figures showed that the number of house hunters registering with estate agencies increased to an average of 299 people per branch compared to 263 in June.
This was the highest figure for more than two years, with May 2009 the last month to have seen average house hunters reach 299.
However, house supply has dropped, with an average of 70 properties available per branch, down from 74 in June. Nevertheless, this was up year-on-year from 68 in July 2010.
In keeping with seasonal swings, sales dropped slightly from an average of nine per branch to seven.
However, first-time buyer sales increased to 21% of all sales in July, up 1% on the previous month.
NAEA president Wendy Evans-Scott said: “It is great to see that interest in property has reached a two-year high, especially at a time when, traditionally, estate agents experience a lull in activity as people take a holiday abroad instead of house hunting.
“It seems that people are beginning to reconsider their options when it comes to buying a property. With many sellers now being more realistic about pricing, we hope the market will rejuvenate in the coming months.”