Asking prices on the up = property prices increase?

A story posted by Rightmove yesterday suggests that property asking prices are now higher than they were in August 2007 - before the Northern Rock crisis.

Does that mean that property values are increasing as well and are now higher than they were in 2007? Not necessarily. First off, Rightmove's figures for asking prices are still far higher than the Nationwide's and Halifax' average house prices. In fact, the difference is over £70,000.

However,  it's certainly an investor's market out there, with sellers keen to move properties on at reasonable prices and landlords looking to increase portfolios. The statement we agree with most in Rightmove's story, however, is that it is a 'very local market' were property values are more than ever determined by location and demand specific to that location.