House sellers have dropped their asking prices for the first time this year, according to the latest survey by Rightmove.
July saw the first fall recorded in 2011 as new sellers dropped their asking prices by 1.6%, the equivalent of £3,797.
The reduction brings to an end six consecutive months of rising prices, which resulted in a gain of 8.1% over the first half of the year.
With sellers at this time of the year traditionally showing more pricing restraint than those in the first six months of the year, the website said it expects further falls over the next few months.
A combination of seasonal factors and a continuing lack of both mortgage finance and buyer confidence is expected to see buyer momentum continue to ebb away.
Meanwhile, the research also revealed that seven in ten properties marketed so far in 2011 are still on the market.
Rightmove said the figures indicated that many equity-poor sellers are unwilling or unable to reduce their prices further.
The number of new sellers coming to the market was also down by 12% compared with July last year, as a result of many homeowners being unable to raise the deposit required to fund their next move.
"Summer sellers are more nervous about their selling prospects than the early birds who asked ever higher prices during the first six months of this year," said Miles Shipside, director of Rightmove.
"Early sellers in 2011 had a chance of worming their way into the more active spring market, whereas those coming to market now at the onset of the holiday season have to price more aggressively as many buyers have already gone to ground.
"With seven out of ten properties marketed so far this year still on the market, sellers in the second half of 2011 need to do something different to promote their property and increase their chances of catching those elusive buyers."
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