The value of some Sussex homes has risen by more than 50 per cent in the past year.
According to estate agent Fox and Sons, the average price of two-bedroom flats has increased from £61,930 to £94,138, or by 52 per cent.
The cost of a standard two-bedroom terraced house increased from £71,356 to £84,642 between the third quarter of 1999 and the same period this year - a rise of 19 per cent.
But regional director David Goldin said demand for property had fallen slightly since the price boom late last year.
He added: "It is clear that 1999 and early 2000 was a phenomenal period.
"Perhaps it was inevitable given the force of the demand that had built up.
"But the repercussions have not been as bad as many predicted and now we are moving back to normality.
"We are seeing a sea change in the market. Whereas sellers were king, buyers now have the upper hand."
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