The price of property coming to the market has fallen for the first time this year, down 1.3% in the month to £365,173 (-£4,795) in August, according to Rightmove.
However, the property portal said the fall was likely more due to holidays than mortgage and interest rate rises.
Prices usually drop in August, and the 1.3% drop is on a par with the average August drop over the past ten years.
Buyer enquiries to agents are down 4% on the hot market of 2021, but remain 20% higher than 2019.
While new listings are up by 12% on the same period last year, but are still 6% down on 2019, while available stock is down 39% on 2019.
Tim Bannister, Rightmove’s director of property science, said: “A drop in asking prices is to be expected this month, as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays.
“Indeed, for those that can, this may be their first summer holiday abroad since before the pandemic.
“Sellers who want or need to move quickly at this time of year tend to price competitively in order to find a suitable buyer fast, with some hoping to complete their move in time to enjoy Christmas in a new home.
“To achieve that this year, they’d need to beat the current average time between accepting an offer and completing the sale of four and a half months.
“Nevertheless, we’re still expecting price changes for the rest of the year to continue to follow the usual seasonal pattern, which means we’ll end year at around 7% annual growth, even with the wider economic uncertainty.”
Reaction
Tomer Aboody, director of property lender MT Finance:
“Although the housing market is standing strong against inflation and higher mortgage rates, it’s only a matter of time before the real pinch is felt across the board.
“The Government may have introduced assistance aimed at helping first-time buyers in particular with adjustments to stamp duty but this can only help in the short-term.
“Those who took out 2-year fixed-rate mortgages in the midst of the pandemic and are now refinancing are facing mortgage payment hikes of up to three times what they initially paid.
“This is having a huge impact on wallets, especially as the cost of living is also going up. The housing market will follow suit and adjust accordingly.”
