He said: "Whilst the report shows a modest decline in prices, this is a small proportion of the substantial prices in recent years. And the picture is still regional with some areas holding up better than others. In fact, the report shows that Scotland is going to show a modest rise this year. This is in line with recent research that shows that the Scottish market could grow 1% in 2008.
"There is no denying that the credit crunch has affected confidence in the market but it is still important to remember that the underlying factors that support the property market remain: low unemployment, historically low interest rates and a pent-up demand for houses. Therefore, rather than a dramatic fall that some doom and gloom merchants are predicting, it shows we are looking at a return to a more steady market rather than the fantastic price hikes we have seen in the previous 10 years."
