The latest Lloyds TSB Scotland review of the housing market shows that in the first quarter of 2009 the cost of the average home fell 4.3% to £148,990. On an annual basis Scottish house prices are down 2.1%.
The rate of decline has increased. In the last quarter of 2008 prices fell 2.3%. The figures 'provides evidence of the difficult start to the year in terms of both house prices and the number of house purchase transactions' the bank's report said.
But at the same time there are signs that more properties are selling. Sales of flats have fallen by 39% while semi-detached sales are down by 28%. However, transaction numbers actually rose in both March and April.
The report described the picture across the country as very mixed with two areas still reporting a small annual rise, compared with more significant annual falls elsewhere.
Dundee and the north of Scotland, excluding Aberdeen, posted the steepest drop in prices since January of 17.5% and 16% respectively. Fife, Perth and Tayside, but excluding Dundee, showed a 9.6% rise.
Edinburgh's average house price slipped by 7.6% but this comes after rises in the previous quarter giving the Capital city an annual price fall of just 1.7%. In Glasgow prices fell by 7.2% but the city has experienced and annual underlying increase in prices of 1.9%.
One reason for optimism is an increase in mortgages. 'The cost of borrowing has reduced for many mortgage holders while there has been a slow but perceptible increase in the level of mortgage availability for first-time buyers,' said Lloyds TSB Scotland's chief economist, Professor Donald MacRae.
'The Scottish housing market continues to adjust to changing circumstances with reduced sales, lower prices, but no precipitous collapse,' he added.