According to Rightmove, the decline was in line with the 10-year average and followed falls in June and July that were steeper than usual.
The average asking price has fallen by £10,777 over summer as sellers price competitively to attract buyers.
Rightmove said this led to the highest number of sales agreed since 2020, running 8% higher than this time last year.
There was also a rise in the number of homes up for sale, up 10% on last year, which contributed to the muted annual price increase of just 0.3%.
There were also instances of sellers pricing their properties too high, Rightmove said, as 34% of homes had been reduced in price.
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The average time to secure a buyer was 62 days, Rightmove found; however, this fell to 32 days for properties that did not need a price reduction and rose to 99 days for properties that did.
Colleen Babcock, property expert at Rightmove, said: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.
“Astute buyers are now benefitting from new seller asking prices, which are on average an enticing £10,000 cheaper than three months ago.”
Babcock added: “Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale. The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020. At that time, the market had recently re-opened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.
“However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive. Our data shows that for a successful sale, it’s better to get the price right in the first place, but if a seller does need to reduce the price, it’s better to act fast rather than waiting too long.”
