Andrew Smith, Primelocation.com's Head of Insight, comments: "Over the past couple of months prime agents have reported a modest upturn in activity (albeit from a very low base), a trend which can be attributed to the impact of falling prices, lower interest rates and a rise in demand from overseas buyers attracted by the dip in the value of Sterling.
"This explains the recent stabilisation in asking prices and provides tentative evidence that we are beginning to approach the bottom of the market. However, it's important to bear in mind that we have a way to go yet, and buyers are still managing to negotiate substantial reductions on asking price.
"With the economic situation worsening and some pundits predicting that unemployment will hit 3 million in 2009, we expect the coming year to be a difficult one for the housing market.
"On the plus side, the weaker pound and falling prices will encourage greater interest from foreign buyers and cash-rich investors and this should lead to a modest improvement in transaction levels.
"But those buyers who do enter the market will be looking for bargains and vendors will remain under pressure to accept lower offers.
"We do not expect prices to begin to recover until well into the second half of 2009, but in the meantime there will be opportunities for those who are willing and able enter the market to make the most of the current situation"
