The vast majority of properties sold last month went for below the asking price, according to latest figures from the National Association of Estate Agents.
More than four in five, or 84 per cent, of homes sold under the listed price in November – the highest number since NAEA starting recording the data in 2013.
It marks a steady drop of 82 per cent of properties selling under asking price in October and 76 per cent in November 2015.
Furthermore, the fall comes despite the number of homes on estate agents’ books falling to an average of 39 last month – a nine per cent decrease on October and the lowest level since July.
But at the same time, the number of house hunters fell by a fifth from 440 per branch in October to 344 in November.
Mark Hayward, managing director of NAEA, said: ‘Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form.
‘We expect this is still the case, and this month’s slow down is simply down to seasonality.
‘Many sellers hold off until January to put their properties on the market, and buyers are more inclined to start the year with a property search, rather than attempting it over Christmas.
‘Likewise, although a large number of sales were made below asking price in November, this can also be put down to the time of year.’
The data shows that 29 per cent of sales were made to first-time buyers, a three per cent drop from October.
The number of sales agreed also decreased in November, to an average of eight per branch, down from nine in October and September.
The figures follow Royal Institution of Chartered Surveyors research earlier in the month, which found more than a third of surveyors thought properties in the area they covered were overpriced.
Nearly 60 per cent of surveyors operating in the South East said prices for homes in the area were ‘above fair value’ in November.
Latest data from the Office for National Statistics shows that annual property price inflation was at 6.9 per cent in December.
The figures also showed that Essex’s Basildon and Berkshire’s Slough – where prices have risen 19.9 per cent and 19.6 per cent, respectively – were the top performing areas in the country for property price growth.
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