Home-sellers slashed asking prices by more than £4,000 in July, the largest monthly drop in four years, new figures have revealed.
The average asking price of £242,097 is 1.7% down on June, or £4,138 lower in monetary terms, and the first fall reported since January, according to Rightmove.
With new sellers now outnumbering successful buyers by an average of nearly two to one, the property website said the research highlighted 'the substantial challenge' facing sellers, particularly given the 'miserable 'viewing' weather and Olympic distractions'.
Elsewhere amongst the figures it was revealed that average levels of unsold stock remain 'stubbornly high' at 75 homes per estate agency branch.
And with new seller numbers outstripping the number of properties sold or taken off the market, stock levels have now increased for five months in a row.
Given the amount of choice buyers enjoy at present, Miles Shipside, director of Rightmove, suggests sellers might have to drop their prices even further in order to secure a sale.
"Even though the supply of new properties coming to market remains constrained compared to pre-credit-crunch levels, in all but the most stock-starved micro-markets seller levels substantially outnumber those of proceedable buyers," he explained.
"Attracting the attention of those buyers is the first step on the road to a successful sale.
"The fact that we have not seen major price falls in the UK and that many areas are not awash with agents' 'For Sale' boards may lead some sellers to be over-optimistic with their pricing, but it is vital that they are dispassionate and face up to what they have to do to get their property fit to sell."
"New seller numbers may be down some 30% on the period prior to credit-crunch, but the numbers achieving a successful sale are down by half and average unsold stock levels are creeping up."
"Sellers need to adjust, as this new world is the new norm."
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