Average asking prices fell 1.7% (£4,138) this month – the first time since January according to property website Rightmove.
Search for property to buy or rent with Propertywide.
This means that that people hoping to sell their homes will have to cut their asking prices further if they want to be successful.
Director of Rightmove, Miles Shipside, said that the level of unsold stock in the market remained high at circa 75 homes per estate agency branch.
“The fact that we have not seen major price falls in the UK and that many areas are not awash with ‘for sale’ boards may lead some sellers to be over-optimistic with their pricing.”
“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,” he added.
Strong competition will make selling a home difficult over the summer – especially with the added distraction of the Olympics and wet weather.
Current average asking prices of property, just on the market, now sits at circa £242,100, according to Rightmove with the average selling price in England and Wales at just £161,700 in May according to Land Registry.