A third of homes on the market have been reduced in price, as homeowners struggle to get properties sold.
Despite the average asking price of a newly-listed property falling by 1.3 per cent or £4,969 to £368,740 in the past month, many are still finding it hard to attract a buyer.
Over the summer, the typical asking price has fallen by £10,777 in a bigger-than-normal summer lull.
Some 34 per cent of homes that are currently for sale have had the asking price cut since going on the market, according to Rightmove.
It is the second-highest level of discounts since 2012, pipped only by 2023 when buyers were put off by high mortgage rates.
Rightmove said that those who couldn’t find a buyer were likely to be pricing their home too high.
Waiting game: More sellers are cutting the asking price of their home after it fails to sell
Colleen Babcock, property expert at Rightmove, said: ‘Astute buyers are now benefitting from new seller asking prices which are on average an enticing £10,000 cheaper than three months ago.
‘Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale.’
The overall average time to find a buyer is now 62 days. However, if a property doesn’t need a price reduction it will sell in an average of 32 days, compared to 99 days if it does.
Babcock added: ‘The high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.
‘Our data shows that for a successful sale it’s better to get the price right in the first place, but if a seller does need to reduce the price it’s better to act fast rather than waiting too long.’
It is still a buyers’ market. The number of homes for sale is now 10 per cent up on this time last year, a level of supply not seen for a decade.
However, the number of sales being agreed is now 8 per cent ahead of this time last year as buyers take advantage of bargains.
This, Rightmove said, was the best July for sales agreed since 2020’s post-lockdown housing market boom.
Steve Beercock, executive director at Beercocks estate agents in Yorkshire & the Humber, said: ‘August has started with some real momentum.
‘We have already seen a surge of sales agreed in just the first week which is a very positive sign.
‘Getting the price right from the outset in the current market is crucial, to minimise the risk of needing to cut the price later.’
On an annual basis, prices have increased just 0.3 per cent.
The number of new homes coming to the market also looks to be slowing down. If this continues, it could reduce the pressure on sellers to discount.
The number of new properties coming onto the market for sale is now only 4 per cent ahead of this time last year, the property portal said.
Buyers are therefore being urged not to play too hard to get if they find a home they like.
Amy Reynolds, head of sales at Antony Roberts estate agents in Richmond, London, said: ‘There are still some well-priced homes sitting unsold, often because buyers are holding back.
‘Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer holiday period and heading into the busier autumn.
‘Those who hold back may see the property they like snapped up by someone else, so it’s always worth an enquiry to gauge the seller’s position.’
The Bank of England’s decision to reduce interest rates may lead to slight drops in mortgage rates, which could stimulate the market to an extent.
However, with the future direction of rates now uncertain, mortgage prices are unlikely to fall dramatically in the coming months.
