Scotland's housing market shrank by nearly £900m in the second quarter of this year, official figures have revealed.

Registers of Scotland yesterday said around 7500 fewer houses were sold in April-June 2008 than a year before, a drop of 19%. The total value of the market fell from £5.729bn to £4.830bn over the same period, a fall of 15.7% But the Scottish Government body, which records every property transaction in the country, reported those houses which did find a buyer were doing so at higher prices.

The average house price rose 3.6% in the second quarter to £155,691, bucking the downward trend firmly established elsewhere in the UK.

John Boyle, of consultants DTZ, yesterday said the increase in prices was "surprisingly high" but the surest evidence yet that Scotland is to avoid a much-hyped crash.

Mr Boyle, like most other analysts, still expects prices to fall this year, but by nothing like the declines seen in England. "I'm forecasting a small fall in house prices in Scotland by summer 2009, but probably less than 5%," he said.

The decline in sales almost mirrors the drop in the number of mortgages approved for Scottish buyers in recent months. Industry analysts believe many would-be borrowers, especially first-time buyers, have been locked out of the market.

Iain Robb, of property solicitors Strutt and Parker, said: "People are still interested and they go out and find a house, but then they find banks aren't willing to support them."