New seller asking prices have dropped by 0.3% (-£1,277) this month to £378,240.
This is according to the latest Rightmove House Price Index which stresses that this is an unusual dip for June, as new sellers lower their price expectations amid decade-high competition to secure buyers
The HPI reveals that some segments of the market are performing more strongly than others.
The higher-priced southern regions and the capital have seen larger price drops this month, being more affected by higher stamp duty charges, and seeing greater increases in available homes for sale
Prices in the more affordable North West, Wales and Yorkshire & The Humber have risen quickest this month, and the overall average asking price for a home is still 0.8% ahead of this time last year
Rightmove shows that buyer activity continues to be resilient. May saw the highest number of sales agreed in any month since March 2022, as properties marketed at the right price and presented in top condition continued to attract buyers.
Buyer demand is now 3% ahead of this time last year, while the number of homes coming to market is 11% ahead. With buyer choice so high the market is very price-sensitive, so sellers are being urged top price realistically to secure a sale.
Rightmove data shows that homes which attract an enquiry on the first day of marketing are 22% more likely to find a buyer than homes which take more than two weeks to receive their first enquiry
Commenting on the figures North London estate agent and former Rics residential chairman Jeremy said: “The amount of unsold stock is rising and transaction numbers are falling.
“However, the overwhelming majority of agreed sales are holding, although some prices are softening. We are telling sellers who are also buyers, but receiving little or no interest in their properties, to concentrate on the difference between the two and reduce closer to their bottom line while still leaving room for negotiation.
He added: “New sellers, particularly of flats, need to recognise quickly the buyers’ market conditions and price to stand out from the crowd.”
MT Finance director Tomer Aboody suggested sellers were more motivated to sell as buyers could take advantage of lower mortgage rates.
“With the economy potentially taking a negative turn, sellers are realising that if they are serious about selling, they need to be open to offers or price correctly in the first instance.
“Increases to stamp duty have had a negative impact on the higher end of the market which has seen a slowdown. Buyers are eagerly waiting to see whether further rate cuts will come, which will lessen the impact of potentially higher stamp duty costs.”