The value of property in the city centre has dropped by as much as 13 per cent, the York Press reports, while other parts have seen prices tumble by 12 per cent.
Local estate agents have not appeared overly optimistic about the prospects of York's property market.
"We have certainly seen a slow down in the last ten months since interest rates started to rise," said Kevin Hollinrake of Hunters Property Group, speaking to the York Post.
"It's when supply and demand gets out of kilter that you start to see a rise or fall in property prices."
The UK's leading fast purchase property firm, National Homebuyers says that the signs have been there for sometime. Director Julian King says: "The drops is double figures should be waking the rest of the UK to what is likely to happen to their property price.
"We highlighted the problems around Nottingham late summer last year and it does not surprise us that York is now seeing drops in property prices.
"National Homebuyers speak to thousands of people each week who are finding the sale of their property at the right price and on time very difficult.
"We purchase properties all over the UK and have identified notable increases in business from Nottinghamshire, Lincolnshire and Yorkshire."
For more information about selling your property quickly or to sell your property and rent it back, visit www.nationalhomebuyers.co.uk/
