Sussex estate agents insist the housing market is still stable despite reports of a recent dip in property values.

They say the perceived drop is down to vendors asking more realistic prices for their properties.

Tim Denning, vice-chairman of East Sussex branch of the National Association of Estate Agents, said: "Where properties are correctly priced, applicants are viewing and in some cases almost immediately agreeing to buy the property.

"Certainly we are not seeing any signs of the market slowing down - far from it."

Last month property website Rightmove reported that nearly £4,000 has been wiped off the price of the average home as higher interest rates continued to take their toll.

During the five weeks to August 14 asking prices in England and Wales fell by 2% to average £192,335, Rightmove said.

At the same time the rate of annual house price inflation fell for the first time in seven months, dropping from a 16-month high of 18% in July to 15.7% in August.

The group said the market was responding to higher borrowing costs, with interest rates rising by 1.25% since November, as well as an easing in the recent shortage of homes for sale.

Wednesday September 01, 2004