Average new seller asking prices have dropped by 1.2% (-£4,531) in just one month according to Rightmove.
While there’s usually a seasonal dip in prices in summer, this is the largest July price drop recorded by Rightmove over more than 20 years of data.
The property website says the continued decade-high level of housing supply for sale is limiting price growth, compounded by the start of the traditional summer holiday season.
Summer sellers typically need to work harder compared to the spring to capture distracted buyers’ attention.
Rightmove attempts to calm fears by saying that in some previous years, such a price drop might have been an indicator of a slower market. However, it insists that what it calls “tempting pricing” from new sellers is helping to improve buyer affordability, enticing new buyers into enquiring, and helping year-on-year growth in the numbers of sales being agreed.
Theresa website states this morning: “Pricing is key, and sellers who are over-optimistic on their initial asking price are increasingly at risk of getting lost among the competition. The muted price trend that we’re seeing at this point in the year has led Rightmove to reforecast its property price prediction for 2025 from +4% to +2%.”
With mortgage rates falling and two more Bank Rate cuts still expected in 2025, the overall outlook for the second half of the year remains positive, it insists.
Rightmove spokesperson Colleen Babcock says: “We’re seeing an interesting dynamic between pricing and activity levels right now.
“The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.
“What’s most important to remember in this market is that the price is key to selling. The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area.
“It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.”
