And now for the good news. In the view of one set of players in the market, property prices may not fall as far as previously forecast. These suddenly, slightly-less-toxically pessimistic observers are the clients of Spreadfair, which offers spread betting on house prices. This particular form of gambling is an outlet for those with money to speculate who are failing to get the fix they need for their abiding passion for the ups and downs of property from such websites as Globrix and the Real Estalker.

Back in June, Spreadfair's clients were wagering that the average house price in December 2010 would be £134,900. However, in July, as Spreadfair reports, the average price edged up to £137,000. This still represents a painful descent from Halifax's current average of £177,351.

But it is yet another sign of a subtle change in mood in the past few weeks, especially as many of those who take a punt on house prices with Spreadfair (they number in the “high hundreds”) are property industry professionals who, presumably, stake their money based on an informed assessment of conditions.

Such an evaluation would now uncover indications of a new realism in the housing market. It is no longer possible to be in a state of denial over the new lower valuation for your home, a mindset that some owners had valiantly maintained despite all the evidence that only best-in-class pads have remained unscathed. At the same time, it's OK again to admit that you are househunting, either out of necessity - or even on a whim.

Douglas & Gordon, a firm of London estate agents, reports that - for the first time ever - it took on more new applicants and did more new business in July than in June. Why? Boredom, debt, divorce, or a growing family are some of the reasons. But the firm also sees a large number of buyers and sellers who are not either breaking up or giving birth, but are just prepared to compromise.

Evidence of this new pragmatism can also be seen in downbeat but not down-and-out tone of the latest survey of the Royal Institution of Chartered Surveyors' members. Neil Foster, an agent from Newcastle, talks of buyers who have “deferred their decision to move for long enough”.

This new climate of realism would be encouraged if the Government gave a clear signal about its plans for stamp duty. In the past few days, some buyers have withdrawn from deals thinking there is to be an exemption for everyone, not just first-time buyers.

It would seem highly unlikely that that Alistair Darling would kiss goodbye to the £48,000 in stamp duty payable on a £1.2million home. Most purchasers of this kind of property think the Chancellor is more likely to start plucking his overgrown eyebrows - which is why they will press ahead with their deals. But that does not excuse the Government, which started the rumour of a tax break and must now give us the firm news, good or bad.

End of the loan drought?

In August 2007, there were 13,027 different mortgages available. Today there are just 3,748, mostly on far less generous terms than before, as our chart on page 4 illustrates.

These figures are just another reminder of how borrowers have been squeezed by banks who want to repair the damage done to their balance sheets by their escapades with “alphabet assets” - CDOs and the other dodgy instruments based on the debts of indigent US homeowners.

Everyone is now aware of the damage that this strategy has caused to the housing market, with mortgage offers withdrawn at the last minute even from customers with impeccable credit records, which may be why the banks - fearful of their reputations - are now trying to play down their role in the downturn.

HSBC this week put out research that suggested that “access to finance was not a major issue” among those who have decided against buying a new property. But should it happen that these reluctant househunters change their minds, HSBC would like it to be known that it has simply loads of money that it's itching to lend.

Is this the moment when the credit crunch started to loosen? Or just a PR exercise from a bank? Readers trying to obtain a mortgage from HSBC will doubtless let us know.

Rich man's world

As usual, rich men have been getting their own way in the property market this week. Steven Gerrard, the Liverpool footballer, has built a huge £350,000 Asda-style gym in his back garden. The structure is so big that it has its own postcode; the neighbours are far from happy.

But these differences of opinion are as nothing to the controversy over a villa in the Côte d'Azur, with gyms, guest houses and more.

The Belle Epoque Villa Leopolda, above, has changed hands for a world record price of €500 million (£398 million). The buyer is yet another Russian oligarch invading the Riviera and determined not to buy a bargain. The new mood of Russian assertiveness on the wider international scene means there will be more such episodes of real estate one-upmanship before the summer ends.

Explore Property

• Buying & Selling

• New Homes

• Overseas

• Interiors

• Investment

• Gardens

• Cool In Your Code

• Specials

• First-time buyer

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers