House prices are under pressure, with properties across the county selling for less than originally asked.

But estate agents say rather than heading for a crash, the market is simply readjusting.

Alecia Bradbury, of Oxford-based agents Savills, said: “Last spring was reasonably buoyant and properties were selling in four to six weeks, if the price was right.

“A handful of homes are selling over the guide price but that is not the case for the vast majority, which are going for about five per cent below asking price. It is still a buyers’ market and buyers are cautious.

“It may be that properties coming on the market over the past couple of months have been too strong in price but it is more a case of a readjustment rather than prices falling.”

Mark Charter, of Summertown agents Carter Jonas, added: “The market has come off its peak and that is reflected in what we are seeing.

“We have just reduced a property from £565,000 to £550,000. Small price reductions of £10,000, £15,000 or £25,000 are the result of changes in the market but where you see large price reductions, that is to do with it being over-priced in the first place.”

But George Philip, of Banbury-based Strutt & Parker, said: “Values have dropped for a number of reasons. Buyers are struggling to get mortgages and people are worried about jobs. I believe house prices have still not found their true level.”

Ms Bradbury said there were pockets where properties were holding value.

She said: “We recently sold a Grade II-listed house in Ascott-under-Wychwood with an asking price of £625,000. It attracted 50 viewings in two-and-a-half weeks which led to five proceedable buyers.”

That property went for ten per cent over the asking price and Ms Bradbury said there was also strong interest in another house in Bledington, near Chipping Norton, which was put on sale at £750,000, received 90 viewings in two weeks and went to sealed bids.

Mr Charter added: “We recently put a house on the market that sold in two weeks but rather than pockets, I would describe it as patchy. Central North Oxford is still buoyant but there is some over-priced stock there as well.”

Ms Bradbury warned: “Realistic pricing is paramount. It is a case of getting the pricing right.”

In response to criticism that estate agents are over-valuing properties, Ms Bradbury said: “It is true that all agents love to get instructions but we don’t earn a penny until a house sells, so it is not in our interests to have over-priced stock sitting on our books. Unfortunately, client expectations often far exceed what is realistic.”

As to the future, Mr Charter said: “At best, prices will stay steady but more likely is that we could see them come off another couple of percentage points over the next few months.”