HOUSE prices fell for the 16th month in a row in October, down 0.1%.
The average cost of in England and Wales is now £160,700, down from a peak of £167,700 in June last year and 3.5% lower than 12 months ago.
But although prices continued to fall there was still an increase in activity, said property website Hometrack.
The number of buyers registering with estate agents rose by 2.1% this month, an increase of more than 22% over the year. Sales rose by 5.9% in October.
However, there continued to be an oversupply of property, suggesting house prices may continue to fall.
Hometrack housing economist John Wrigglesworth said: "The key feature of the market this month is a significant increase in house sales activity, helped by more buyers returning to the market.
"However, the number of houses for sale has also increased. As a result, excess supply continues to plague the market. House price falls continue unabated."
The percentage of their asking price that sellers received continued to fall this month, down to 93.1% from 93.2% in September. Meanwhile, the length of time a property was on the market fell slightly to eight weeks.
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