Dorset Property Market Update February 2024

Sold Board Feb 2024

Dorset Property Market Strengthens as house prices increase for fourth consecutive month

By Grant Brooks – MD Edwards Estate Agents

Following a positive start to the year in January, the Dorset property market has continued to grow in both buyer and seller activity throughout February as market confidence returns. Fueled by an unusually optimistic media and supported by two strong market influencers releasing reports of increasing average house prices.

February has seen the release of House Price Index’s from the Halifax Bank and the property portal Rightmove, both confirming increases in average house prices.

Halifax House Price Index (January 2024)

In their recent House Price Index, The Halifax reported the fourth consecutive month of house price increases.

The report confirms that house prices have risen for the fourth month in a row, Halifax recorded a 1.3% increase in January as lower mortgage rates ease pressure on buyers.

With January’s rise, the average price of a house in the UK now stands at £291,029, up from £287,105 in December, according to Halifax. It means that despite repeated fears of a correction, prices are 2.5 per cent higher than they were a year ago and only £2,000 or so below their peaks in the autumn of 2022.

Key Points:

Average house prices rose by +1.3% in January, the fourth monthly rise in a row
Property prices grew +2.5% annually, the highest annual growth since January 2023
Typical UK home now costs £291,029, over £3,700 more than last month
South East England continues to see the most downward pressure on house prices

Kim Kinnaird, director, of Halifax Mortgages, said: ‘This is the fourth consecutive month that house prices have risen and, as a result, the pace of annual growth is now 2.5%, the highest rate since January last year. The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market, has contributed to increased confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.’

Rightmove House Price Index (February 2024)

Whilst the Halifax makes for interesting reading and does represent a significant data set, it is limited to Halifax clients.

Rightmoves House Price Index draws on a much larger data set, although the data is focused on asking prices and not the sale price on which the Halifax Index is based.

Key points:

Average new seller asking prices rise by 0.9% (+£3,091) this month to £362,839. The annual price change moves tentatively back into positive territory after 6 months of annual price falls, with prices up by 0.1% on a year ago.
Agreed sales in the first six weeks of 2024 are 16% higher than over the same period last year, and 3% higher than in the more normal market of 2019, indicating that many early-bird buyers feel that 2024 offers the right conditions to move.
The growing market momentum is also evidenced by the increase in activity of both buyers and sellers on Rightmove with 7% more new listings coming to market than last year, and a 7% upturn in the number of buyers enquiring.
However, the market remains very price-sensitive, and appears to be operating at two speeds, with properties that are priced accurately being snapped up by budget-conscious buyers, whilst over-priced properties are left on the shelf.

The statistics from both the Halifax and Rightmove are interesting, although they are focused on the country as a whole, so for buyers and sellers trying to navigate the Dorset property market can be daunting without any local perspective.

Edwards Estate Agents have been selling property in Dorest for over 15 years, we have been entrusted to help many thousands of local people and families to buy and sell their homes, with our discrete, professional approach. If you are thinking of a move this Spring, please don’t hesitate to give us a call.