House prices nationally have fallen for the sixteenth consecutive month - with the drop-off in the Midlands among the highest.
The Hometrack October survey of the national housing market reported a further fall of 0.1 per cent.
The study found the areas with the worst price falls were the West Midlands, 0.3 per cent; Wiltshire 0.5 per cent; South Yorkshire 0.3 per cent, and Nottinghamshire, 0.3 per cent.
John Wriglesworth, Hometrack's housing economist, 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 and as a result, excess supply continues to plague the market. House price falls continue unabated."
The national average house price now stands at £160,700, down from a peak of £167,700 in June 2004 and down over
3.5 per cent in the past 12 months.
The number of buyers registering with estate agents increased by 2.1 per cent, bringing the total increase in buyers this year to over 22 per cent.
More buyers in the market and a greater level of confidence had resulted in an increase in activity of 5.9 per cent.
Supply still exceeded demand, with a further increase in the number of properties listed of 1.9 per cent.
Accordingly, house prices would continue to fall until supply and demand realign.
Sales price as a percentage of asking price had decreased slightly to 93.1 per cent this month, indicating that it was still very much a buyers' market.
Buyers were continuing to negotiate large discounts off asking price, and have greater bargaining power.
The time taken to sell a house had decreased a touch to eight weeks (8.1 weeks in September's survey), but was still much higher compared with October 2004, when it took an average of 6.5 weeks to sell a property.
The number of viewings per sale had also decreased to an average of 12 (12.4 in September's survey). With more buyers in the market, houses were not sticking as long.