The housing market is becoming increasingly price-sensitive as listing values drop and discounts increase, Rightmove says.
The portal’s latest data shows that 7% of unsold properties saw their prices reduced last month, up slightly from the 7.5% that were reduced in October 2019.
This is double the 4% of properties that had price drops in October 2021.
Rightmove’s house price index showed average market listing is now valued 1.1% lower than a month ago, with annual growth dropping to 7.2% from 7.8%.
That puts average asking prices at £366,999.
Rightmove said buyer demand was still up 4% in the more normal 2019 market, but down 20% in October last year.
Properties for first-time buyers continue to be the hardest hit sector, with year-on-year demand down 26% in October, while second-tier demand is down 17%, and the top end is down 15%, according to the portal.
The analysis showed a 13% annual increase in the number of new sellers entering the market, while the average inventory per agent fell slightly from 50 to 49 in October.
The typical time on market also increased to the highest level since January 2022 at 40 days.
Tim Bannister, Director of Real Estate Science at Rightmove, said: “The now largely superseded mini-budget has accelerated the slowdown in market activity that we have seen since the summer, and we are now in another state of limbo as we await any surprises or help in Jeremy Hunt’s fall statement on Thursday.
“The frenetic market of the past two years has turned into a more normal market, more abruptly and less smoothly than we had anticipated.
“Although many continue to move, especially those whose purchase has already been agreed, it is understandable that some people stop to think.
“Some buyers have decided to look to Christmas instead and join in the New Year’s jump in moving business.”
Bannister said there was not a glut of unsold properties, and the average number of applicants for the low number of properties available for sale is still a third higher than it was in October 2019 , which he says helps prevent any awards. decreases more than usual at this time of year.
He added: “The era of historically low interest rates and buying frenzy is over, which could give way to a more normal market that opens up potential opportunities for those who have been discouraged from entering frenetic market over the past two years.”
.