House prices fell by 1.0% over January, representing a 9.4% fall over the last 12 months, Hometrack has reported.

While some agents are reporting an increase in buyer interest, the latest survey shows the average time on the market continues to rise to 12.3 weeks – up 45% on a year ago, while the proportion of the asking price being achieved remains below 90% (88.3% compared to 93.5% a year ago). These measures suggest continued price falls over 2009.

Richard Donnell, Director Research, Hometrack said: “There are signs that the process of market re-pricing is well underway with agents reporting price falls across 58% of the market, but the reality is that over 2009 the market will be at the mercy of the economy with many would-be buyers remaining highly circumspect over the broader outlook.

After more than a year in denial, the majority of sellers now accept that house prices have fallen. Moreover there is a growing realisation that that if they are to have any hope of selling, realistic pricing is vital.

Over the last 12 months the greatest price falls have been seen in London (10.7%) where values have been falling off a high base. In London the proportion of the asking price being achieved is 88% with an average 16 viewings per sale. The lowest proportion of the asking price being achieved is in Wales (87.4%) while the highest is in the North East and North West (both 88.6%). The East Midlands has the longest average time to sell at 15 weeks.”