The RICS predict that house prices will fall by a further 10 % during 2009. This will mean that they have fallen 25% from their high point in the summer of 2007.

I think I agree with them, provided that the financial markets and mortgage packages are available. In speaking to the local Estate Agents over Christmas many that I have dealt with over the past 15 years have reduced their staff to a minimum but are hopeful that 2009 will see a gradual return to normality.

House prices are certainly falling slower now. They may drop 2% before the end of January 2009 but when buyers return to the market after Christmas the market may be more stable.

Most buyers have a degree of flexibility in the time frame they select for buying and selling a home. Having read the horror stories of the last few months many who were ready to move have put their plans on hold. However, once we get some stabilisation of the market buying and selling, even at a lower price than before, becomes a risk that can be considered.

Provided that sellers are realistic about the value of their property there are bargains to be had as those few sellers that simply must sell have to drop their prices to attract a sale.

When trading up the reductions of the larger house in percentage terms make them appear even more value. A 10% reduction from a base figure of £500,000 is more palatable if your own property of £300,000 has only dropped in value by 10%.

Hopefully, therefore, the New Year will produce more market activity than the last few months of 2008.