The average asking price of a newly-listed home for sale has fallen by 1.0% this month, says Rightmove.
While a price drop in July is normal, this month’s fall is much larger than the ten-year average July fall of 0.2%.
The portal warns that sellers are having to compete harder to attract distracted summer buyers in the current market, where supply is very high.
Although the number of available homes for sale is 1% below this time last year, it is still very close to a 12-year high for the time of year.
Rightmove adds that movers are always distracted by the summer holiday season, but this year the World Cup and the unusually hot summer have also contributed to lower activity levels.
Rightmove analysis shows that the first heatwave in May caused a temporary 8% drop in buyer demand before rebounding, while June’s heatwave caused a similar temporary decline of 6%, followed by a 4% dip during the current July heatwave.
Portal spokesperson Colleen Babcock comments: “This month’s larger-than-normal price fall reflects the reality of a market where buyers have plenty of choice and sellers are having to work harder to stand out and attract them.
“They’re also competing with an unusual number of distractions which have been keeping the minds of some potential buyers occupied.
“While these diversions are short-term, they’re adding to what is already a distracting summer holiday period to create a challenging selling environment.”
Highlighting how price-sensitive buyers are in the current market, a Rightmove analysis shows the importance of getting the asking price right from the outset.
Nearly three-quarters (74%) of homes that have successfully sold and completed this year did so without an asking price reduction.
Homes that do require an asking price reduction spend an average of 127 days on the market, compared with just 36 days for those that sell without a reduction.
These findings underline how the most successful sellers are standing out against the competition by coming to market at a compelling price from day one, says Rightmove, rather than risking the need to reduce the asking price later by testing at an over-optimistic price.
