Hi Jimmy, I think the figs comparing same month year-on-year are misleading, it might work nationally but for a single city, the sample is too small to talk about single percentage points. It becomes more meaningful if you compare 6 month averages.
I have flats in Bristol which (based on 6 month averages) have recovered close to the 2007 peak, after a trough during 2009. This means I could now sell and make a decent profit on the development. But with IRs likely to remain low the cash-flow is great, so I'm inclined to hold.
I'm ambivalent about the recovery.
On the one hand it gives me a second exit with the flats, to let OR sell. I've made mistakes in the past so now I like both exits available on any project.
On the other hand, the recovery means it's more expensive to buy more stock as there seems more confidence in the market. I like to buy repos and the deals just aren't there like they were last year even.
The Bristol market is very different to places like Leeds or Plymouth for instance. Have a look at the LR stats.