The average price of all property sales in England and Wales in June fell by just 0.3 per cent compared to May – the lowest monthly fall since April last year.
Properties were sold for £197,802 on average last month, compared to £198,802 in May, figures from Acadametrics have revealed.
The figures mean the housing market has reverted back to the same level as at the start of 2006, when average sales prices were just below £200,000.
Prices are now down by some £34,000 since their peak in February 2008, when transaction prices averaged £231,822.
While transactions are still historically low, the increase in property sales that have long been seen in the spring did take place in 2009, despite tight lending criteria.
In fact, agreed sales transactions increased by 43 per cent in May compared to February. In the last nine years, the average rise in the equivalent period has been 36 per cent.
However, the actual number of sales completed in May 2009 is markedly down compared to previous years. In the month approximately 40,000 transactions were completed; from 2000 to 2008, the average May sales numbers have averaged almost £104,000.
Dr Peter Williams, chairman of Acadametrics, commented: "Overall the evidence suggests that the market is bottoming out but the potential for further reductions remains, not least because of the acute under-supply of mortgages.
"Going forward this could be a serious downward pressure on the market. There is a degree of optimism in the air regarding the economy and the housing market at present.
"However, we know unemployment will continue to rise, that public expenditure which has helped underpin the market will be more limited going forward and that interest rates will almost certainly rise in late 2010."
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