Property prices have fallen further than they did in the recession of the early 1990s, but there are signs the rate of decline is slowing, according to a new report by CoreLogic.

Kevin Brogan, residential market commentator at CoreLogic, told 3AW Breakfast it’s too early to say whether house prices have reached their lowest trough.

“We’re still seeing downward pressure on house prices, but the rate at which they’re falling has slowed down,” he said.

Mr Brogan said there are early signs that the market is recovering.

“We’ve seen a slight increase in property transaction activity, and we’ve seen a slight decrease in the rate at which house prices are falling and those are indicators that perhaps the market is beginning to plateau,” he said.

Melbourne property prices have fallen by 10 per cent in the past 12 months.

Melbourne month-on-month property values were down by 1.5% in December last year, but that rate of decline improved to 0.6% last month.