Rightmove says it has new evidence of a slowing rate of growth in the property market, with the price of newly-marketed property falling by 1.7 per cent, equivalent to £4,542, over the course of the past month.
This is typical at this time of year as those choosing to come to market seek to undercut the prices of other properties to boost their chances of finding a buyer, says the portal.
November has recorded a drop in new seller asking prices in eight out of the last 10 years, although the more positive tone of this year continues with the monthly fall being the smallest since 2008 and the annual rate of increase climbing to 8.5 per cent.
Following the most active year for transaction volumes since 2007, average stock levels per estate agency branch are at historically low levels with an average of 60 properties for sale. This is the lowest number ever recorded at this time of year, with lack of property choice having helped fuel this year's upwards price pressure.
The volume of property coming to market is also slowing down, further limiting supply, and this month sees new listings down one per cent on the same period last year and 15 per cent on the last month. While prices are falling in the run-up to Christmas, there are still signs of supply shortages in some parts of the country compared to buyer demand which could push prices up again in 2015, says Rightmove.
Miles Shipside, Rightmove director and housing market analyst says the underlying demand remains strong but has been muted by higher prices stretching affordability at the same time as the ability to borrow more to fund those higher prices has been curtailed by tighter mortgage lending.
Shipside says those looking to sell in the New Year should take note of activity patterns. Rightmove data shows a surge in visits to the portals over previous Christmases, starting on Boxing Day and continuing an upward trend during the nine-day holiday period.
Boxing Day 2013 saw more than 1.3 million visits, a near three-fold increase on Christmas Day, and this rose to more than 2.2 million by the first working day of 2014.
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