Sellers need to be more realistic and buyers need to not worry about "missing out", mortgage experts have said.
Speaking on the latest FTAdviser podcast, Mike Cook, chief mortgage officer for Market Financial Solutions, said: "Annual house price inflation on average is still up about 1 per cent on last year.
"It's only people who are losing out are those who bought last year and are now selling this year - these will be seeing a down valuation.
"The biggest moves have been in London prime property - those worth more than £1mn or £2mn. These are being down valued a little more than some others that we have seen outside of London."
But it is not as big a concern as headlines perhaps make out, he suggested. "For those buying, you always feel like you have missed out, no matter what decade you bought in.
"You know what, property tends to go up in value over time, even in this sort of market. Sometimes you have to compromise on area, but speak with your broker and the lender and talk about rates."
Jane King, mortgage and protection adviser for Ash Ridge, said most advisers "have been around the block a bit and we're used to it", and thought the latest house price drop news could be good for house buyers.
"Lenders are being more realistic about lending, and sellers are seeing valuations down about 5 per cent", she said.
Her advice to clients would be to potential buyers. "There is never really a wrong time to buy, if you find the property you love. It is impossible to time the market unless you are very lucky.
"The prices that everyone saw in the days of Covid - those sealed bids - that is all gone. You need to be more realistic as a seller."
In the podcast, work experience candidate Theo Gray provided a striking report about consumer confidence and highlighted areas where advisers can lend their specialist support to both buyers and sellers.
To listen to the full episode, use the player above or find us on Spotify, Apple Podcasts, Acast, Google Podcasts and most other platforms.
