New homebuyers increased their market share by 1.5 per cent between December and January, bringing it to 14.5 per cent overall.
The increased optimism has been largely put down to the current financial climate with the drop in property prices in some areas acting as a platform for many those who may have otherwise struggled.
NAEA president, Stewart Lilly, said: “It is very encouraging to see the New Year start optimistically as buyers and sellers make a welcome return back to the market.
"The past couple of interest rate cuts seem to have taken effect on boosting consumer confidence and the market has started to stabilise. We hope this positive trend will continue throughout the year.
However the NAEA said that while consumer confidence is rising, there is still some hesitance on part of both the buyer and the seller.
Sellers lack of realism was also highlighted, with asking prices still coming in quite a bit higher than the actual value of the home.
Lilly stressed that whilst January's figures are looking promising, they are still not as high as those seen in 2007.
The number of agreed sales falling through held steady between December 2007 to January 2008, taken by the NAEA to indicate a renwned commitment on the part of buyers.
