Areas such as Camp Hill and Briar Hill in Northampton saw prices dip to £89,995 with a three-bedroom house in Standens Barn falling to £99,995 compared with £104,995 in January 2006.
Halifax announced this week that the average house price in the
UK was £172,108 after a 13 per cent drop since the start of the year.
Richard Greener, from Richard Greener estate agents in Northampton, said: "I don't know how long it will carry on for. The last time the market went into similar conditions was 1989-1992 and house prices fell fairly steadily for a period of two-and-a-half years.
"I think what's different is that the drop in prices has been much quicker. It could last six months or it could be two years. I have actually done deals for people who have lost money who have bought houses in 2005.
"The housing market survives on confidence and that is why the market is dropping because people are not buying in volume. We're probably looking at something like 70 to 80 per cent drop in volume in the housing market and the people who are moving are the people who have to."
Rob Turton, of online firm The Agents in Northampton, said the slide in prices had encouraged investors to buy, and hoped 2009 would see a change in the market.
Mr Turton said: "Personally, I think 2009 will continue as it is for the first quarter and then maybe level out in the summer.
"People that have been wacthing the market are starting to come out and buy and properties at the bottom of the chain are actually starting to move."
At the other end of the market, Bidwells estate agents in Northampton is expecting an offer on a rare £2.25 million 17th century house in Chapel Brampton.
Robert Godfrey, partner at Bidwells in Northampton, said the million-pound house market had been more resilient to the economic downturn.
"It's quite a unique instruction and demand continues to remain at the top end of the market, " Mr Godfrey said.
"Unlike the average, with falls of around 12 per cent, the top end £1.5 million-plus market has probably seen prices remain quite resilient."
The full article contains 413 words and appears in Northampton Chron & Echo newspaper.
