Even as house prices continue to fall nationwide, homes are not selling as fast as they once were.

House prices have fallen for six months in a row, according to Cotality. The research firm recorded a -1.1 percent drop in property values in September, with many capital cities recording even bigger declines.

Against this backdrop, fewer existing homeowners are rushing to put their properties on the market. But even with fewer listings, the number of homes sitting unsold is also climbing. Total housing stock for sale was up 23.1 percent in September, compared with a year ago, according to Cotality, illustrating how would-be house shoppers are taking longer to move, despite the apparent buyers' market. Capital city homes are also taking longer to sell: a median 39 days, up from just 23 days a year ago.

So why are would-be homeowners hesitant to buy, even as prices fall.

Buyers are reluctant to take the plunge as their anxiety over another market downturn grows. First-time homebuyers are just so naturally scared even without the prices falling. And now the fear for them is that they don't want to catch a falling knife, have negative equity within a short period of time, because they don't know when prices will stop falling. Fall in house prices come amid four interest rate hikes this year, reduced borrowing capacity, continued inflationary pressures and general market uncertainty.