Prices fell 0.9% between October and November following October’s 1.2% gain, while in the three months to November the average house price fell 0.6%.
Martin Ellis, housing economist at Halifax, said: “Overall house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households' finances.
“The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little.
“We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little.”
Capital Economics said: “This month’s fall in the Halifax house price index was hardly a surprise given other recent, downbeat economic news. And with the labour market weakening rapidly and the economy on the brink of recession, the downside risks to house prices have strengthened.”
Tracy Kellett, director of the home buying agency BDI Homefinders, commented: “Last week the Land Registry said that price falls had accelerated in October. Barely a day later, the Nationwide’s chief economist was describing the November market as “surprisingly resilient”.
“Now the Halifax House Price Index has muddled the debate even further by issuing a decidedly downbeat snapshot of the market.
“Behind the apparently contradictory data lies a housing market which is still essentially stagnant, with paltry levels of transactions.
“This is why tiny variations in the numbers will make house price indexes fluctuate wildly.
“But such volatility should never be confused with progress.
“The Land Registry data is the most authoritative – and it shows that nationally, prices are falling.
“But leaving aside all the confusing number crunching, the fundamentals of house selling and buying haven’t changed.
“With so few of them around, buyers can afford to be choosy.
“But good properties that are priced sensibly are selling well.
“Detailed and careful research of the local market is still the only way to gauge whether a property is priced realistically.”
Liya Fateh, director of the estate agent review site MeetMyAgent.co.uk, agreed: "At the moment, it's almost impossible to predict which way house prices are going to trend from month to month. For consumers it's almost pointless using any of the house price indices as a measure of market conditions because they're so topsy turvy.
"The concern is whether a fragile property market, living off scraps, is robust enough to cope with another cold winter. Mirroring the mild weather the UK has enjoyed up until now, property market conditions have been fairly benign, but as we enter traditionally quiet months for house purchases, the mild headwinds could well be about to get a little chillier.
"If you want a true measure of market conditions, walk into any estate agent's office and they will tell you the same thing - there is a large amount of stock that is taking a long time to shift, and the only properties which are flying out the door are those where the sellers are willing to drop their prices to tempt buyers.
"There are buyers out there, but they are holding all the cards and on the hunt for pre-New Year bargains. With so much choice at the lower end of the market, only the motivated seller who is willing to price their home sensibly is likely to find a buyer."
