Rightmove warned that economic uncertainty has scared off people from marketing their homes for sale, with new seller numbers dropping 13% in November on October to the lowest level since the collapse of Lehman Brothers in September 2008.
With new sellers down 11% year-on-year, Rightmove revealed that 70% of home movers feel it is a “bad time to sell”, with many believing buyers’ negotiating power has strengthened, as 61% stated it was a good time to buy.
The situation has also fuelled competition among buy-to-let investors looking to snap up property bargains as funding becomes more competitive.
The monthly house price drop, equivalent to £7,528, reversed the 2.8% gain in September, leaving average house prices at £232,144. For the first time in three years, all regions recorded monthly average house price falls.
Nevertheless, on an annual basis, house prices in England and Wales increased 1.2% in November.
Miles Shipside, director of Rightmove, said: “Markets dislike uncertainty and so do people who are deciding whether or not to enter the property market.
“Agents report that many would-be sellers are postponing their marketing until the New Year, influenced by the current wall-to-wall media coverage of the Greeks and Italians attempting to get their own far-flung houses in order.
“It’s no great surprise that those who have braved the stormy conditions have had to accept a substantial ‘haircut’ on their asking prices.”
In addition, Rightmove warned that sellers will have to prepare for a longer period of subdued activity, with the seasonal slowdown having arrived early and many areas still recording a high number of unsold properties.
