People are still failing to put a realistic price their homes despite a 3% fall in the past four weeks, according to property website Rightmove.

Commercial director Miles Shipside said: "Some sellers could avoid months of disillusionment and despair if they started marketing at an asking price a lot closer to where they are likely to end up.

"While average prices have fallen by 7.1% over the past year, in most parts of the country you should look to at least double that discount to achieve a sale."

An average of just 20,000 people a week put their property up for sale during the period, the lowest level recorded by Rightmove since 2002, and well down on a level of around 35,000 a week 12 months ago.

But the group said the lowest Bank of England interest rates since 1955 and the expectation of further aggressive cuts is likely to lead to a greater volume of sales next year.

Rightmove said the low level of sellers suggested that people are not under pressure to sell their home, with many unwilling to enter the market until the outlook for prices had improved.

The trend for sellers to sit on their hands has led to a decline in the average number of properties estate agents have on their books, with this sliding to 73 in October.

This reduction is not only being driven by people waiting to sell, but also by vendors withdrawing their homes from the market unsold, which has in turn contributed to a fall in the number of days homes are on the market for to 87 days, down from 90 days.

Meanwhile, mainstream buyers are still being forced out of the market by restrictions on mortgage availability and demands by lenders for big deposits.

But the group expects this to start to ease next year, releasing pent up demand which will be fuelled by historically cheap borrowing and cheaper property.

It said that cash-rich or mortgage-ready buyers already face a tempting combination of low borrowing costs and sellers willing to do deals.

Copyright © Press Association 2008