On an annual basis Scottish house prices have risen by 0.2%.
The average Scottish house price is now £151,320 which is 89% of their peak at the beginning of 2008.
Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish housing market has adjusted to the recession with a halving of sales and a period of price volatility."
Compared to the previous quarter the number of transactions in the Monitor is down by 17% and by 8% when compared to the same quarter one year ago. Prices continue to show volatility as a result.
McRae said: “Mortgage availability has increased however prices have remained virtually static while the economy is showing tentative signs of modest growth.
“There is some indication of a modest pick-up in housing market activity at the end of last year.
“Mortgage availability has increased, however prices have remained virtually static while the economy is showing tentative signs of modest growth.”
However McRae warned “The Scottish housing market remains largely muted entering 2013."
