Dorset Market Update – September 2021
By Grant Brooks – MD Edwards Estate Agents
With competition for the new property coming on to the market at more than double that of pre-pandemic levels, there seems little respite from the frenetic levels of buyer demand in Dorset. With such high demand from buyers and the relatively low levels of new property coming on to the market, we increasingly see the emergence of the ‘power buyer’ status being used.
The term is used to describe people that are chain free, so have already sold and are often in rented accommodation with cash in the bank, or a first-time with a good deposit, a mortgage in place and able to proceed immediately. The power buyer is in a very strong position and out-competing other buyers that still have a property to sell.
What is a power buyer?
With such a fast-paced and competitive property market getting an offer accepted on a property is not so straightforward, buyers that are not immediately proceedable often lose out on the property of their dreams to buyers that can out-bid and move in quickly.
In presenting an offer to a homeowner, the estate agent much verify the position of each person offering, so the stronger the buyers’ position, the more likely the owner is of accepting their offer. This position is never easy and there is inevitably disappointment.
For those that have been disappointed, a change in strategy is the answer, and power buyer status is the solution to avoid further disappointment.
How to get power buyer status?
There are essentially two types of power buyer, but in each case, they offer the same outcome.
The first is someone who has sold their own property and is ideally in rented accommodation, although if they have their property under offer and it’s fairly well advanced, that would be almost as strong.
Secondly, a first-time buyer with a fairly larger deposit (20%+) with a mortgage arranged in principle.
Power buyer status check list –
- Immediately able to proceed (No dependant property to sell or under offer)
- Cash in the bank (with proof)
- Mortgage arranged in principle
- Conveyancer/Solicitor appointed
Dorset house prices
In the recently published ‘House Price Index’ from the property portal Rightmove, they reported that nationally, house prices are at an all-time high, with the average price of property coming on to the market up by 0.3% on the previous record to £338.462. The figure represents a modest £15 increase on the previous high in July of this year.
More locally, the increase is a little more, reported at +1.2% in the month. Interestingly the year to date increase is very strong 8.5%.
Forecast for the autumn market
Whilst this month has seen the record for the value of property coming to the market broken yet again this year, the market looks to be finding some stability, as indicated by the slowing increase of just £15 on the previous high. This is further supported by the slight increase in the number of new properties being listed, offering the beleaguered buyer more options.
This increase of new properties coming to the market is supported by both our own records and by Rightmoves ‘House price index’ which shows that the number of new property listings for the first two weeks of September being 14% more than the last two weeks of August.
With more choice for buyers, we anticipate that this will further stimulate market activity by encouraging homeowners to put their property on the market, certainly if they are looking to buy another property.
Grant Brooks – MD Edwards Estate Agents