The average price tag now in Britain is £342,401, which is £2,044, or 0.6 percent, less than in October.
The figures, released by property website Rightmove, come as sellers seek buyers’ attention ahead of the traditional pre-Christmas lull.
It said this month’s price drop was the largest monthly fall since January, when there was a 0.9 percent decline.
December is usually the quietest month for buyer activity, though interest from house hunters tends to bounce back on Boxing Day, Rightmove said.
Last year, there were more than 51 million visits to Rightmove’s site between Boxing Day and the first working day of 2021.
Tim Bannister, Rightmove’s director of property data, said: “New sellers have given buyers an early Christmas present.
“Sellers who come to market this close to the distractions of Christmas often have a pressing reason to sell, so they price more attractively to grab the attention of prospective buyers who may be otherwise occupied.
“We expect this downward price trend to be relatively short-lived, though sellers who are in a hurry will continue to need to attract buyers for most of December as well.
“As soon as Christmas Day is out of the way, there’s a boom in searching for property on Boxing Day, perhaps with time free in the festive season and a resolve to enjoy next Christmas in new surroundings. That is likely to push prices higher again and raise competition from other buyers.”
Simon Bradbury, managing director at Thomas Morris Sales & Lettings, said: “With the holiday season coming up fast, sellers might be tempted to put off beginning the process of putting their home on the market until the New Year.
“But Boxing Day is historically the start of a busy period of new sellers coming to market and a resurgence of prospective buyers browsing properties.
“If they wait until January, they may miss out on a valuable period of time to attract buyers.”
Richard Palfreeman, managing director at Northfields estate agency, said: “We often find in November and December that some vendors are motivated to secure a sale, so there are some great bargains to be had.”