LONDON (AP) — House sales in Britain have dropped to a record low, though asking prices are becoming more realistic, the Royal Institute of Chartered Surveyors said yesterday.

The average number of transactions per surveyor in the May-July quarter was 14.4, the lowest figure the institute has ever recorded, the institute said in a report.

However, it detected signs that realism was returning to the market, with many sellers dropping their asking prices.

"In June, surveyors reported that predatory buyers were bargain-hunting for property," the report said.

"This month, surveyors report that realism has returned to the market with many sellers dropping asking prices to more realistic levels."

The number of surveyors reporting a fall in new buyer inquiries was 27 percent higher than those reporting a rise in July, the report said. But that was an improvement from May when the number reporting a drop was 50 percent higher than those reporting an increase.

"The lack of mortgage finance has brought the housing market to a virtual standstill with first-time buyers rapidly becoming an endangered species," institute spokesman Ian Perry said.

"Going forward, there are signs that sales activity might pick up a little as sellers start to re-evaluate unrealistic asking prices."