Dorset Property Market Update May 2024

Edwards Estate Agents - Buyer Demand & Reduced Mortgage Rates Push Asking Prices to Record High

Grant BrooksBuyer Demand & Reduced Mortgage Rates Push Asking Prices to Record High

By Grant Brooks – MD Edwards Estate Agents

In and around Ferndown and across Dorset the May property market has seen a significant increase in buyer demand as the big mortgage lenders cut interest rates.

In recent weeks, three of the UK’s biggest mortgage lenders, HSBC, TSB and Barclays have all announced mortgage interest rate cuts to over 100 mortgage deals, following increases in previous months, and brokers are confident that the cuts will prompt other lenders to follow suit.

The cut in interest rates, brings relief to both buyers and existing homeowners, giving a welcome boost to those who have been sitting on the fence waiting to see if borrowing becomes more affordable.

Whilst the Bank of England held borrowing costs at 5.25 per cent earlier this month, a 16-year high, it signalled a rate cut could come as soon as next month, particularly given last week’s news of the reported fall in UK inflation.

UK inflation fell to 2.3%, which is just shy of the Bank of England’s target of 2%, which marks its lowest level in almost three years.

Mortgage markets have therefore, adjusted their forecasts, signalling a potential end to the recent trend of lenders increasing their rates and resulting in the announced cuts.

Asking Prices Pushed to Record High

According to the recently published House Price Index from property portal Rightmove, asking prices hit a record high in May as homeowners, buoyed by the news of lower mortgage interest rates and stronger buyer demand, have become more optimistic.

The latest house price index shows that the average price of property coming to the market reached a new record of £375,131, rising by 0.8% at the start of May. Asking prices are 0.6% higher than this time last year, although there is of course no guarantee that homes will sell at these prices.

The data from Rightmove confirms that the price growth continues to be led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year and suggests that the market is being driven by pent-up demand.

The report further confirms that the number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market, highlighting the strength of buyer demand.

The real issue within the property market is not finding a property or indeed a buyer, but transaction times, this is confirmed in the Rightmove report. The average time it takes for under-offer homes to reach completion is a painful 154 days, that’s almost 6 months to complete.

Some of the fantastic properties listed for sale in Dorset this month

Here are just a few of the properties listed for sale from across Dorset in May 2024 –

House for Sale in Blandford Forum – Guide Price £1,250,000

House for Sale in Wimborne – Guide Price £775,000

House for Sale in Ferndown – Guide Price £725,000

House for Sale in Wimborne – £675,000

Deteched House To Let in Ferndown – £4,000 PCM 

Christchurch Road, Ferndown

Detached House To Let in West Moors, Dorset – £2,500 PCM

The Coppice, West Moors, Ferndown

Detached House To Let in West Moors – £1,650 PCM

The Avenue, West Moors, Ferndown

To see the very latest homes to come to the market, click ‘New to market homes, this lists all of our very latest properties for sale.

Or see more ‘Recently Sold Properties.

Ready to move?

If you would like some help or advice, please feel free to give me a call at our Ferndown Office anytime.

You can use our Instant Online Valuation or book a Face to Face Valuation.

Until next month, happy house hunting.

Grant Brooks – Edwards Estate Agents

See what our customers say about us, read our customer reviews.