Dorset Property Market Update June 2024

Edwards - Poole-Bournemouth 2

Dorset Property Market Enjoys Stability as Inflation Settles at 2%

By Grant Edwards – MD Edwards Estate & Letting Agents

Amidst the heightened political activity surrounding the upcoming General Election, the property market in Dorset continues to exhibit remarkable resilience. Buyer interest remains high, and our Ferndown Office in Dorset has seen a healthy number of new properties come to the market in June.

Whether those considering their first step on the property market ladder or the seasoned movers, stability within the property market is a welcome change from the extreme highs and lows of the seller and buyer markets in recent years.

With more years of experience in the local Dorset market than I care to remember, the challenges posed by the extremes of the market are not pleasant for all concerned, so to have the current market stability is a joy. Buyers and sellers are less stressed, have more time to think, to make better decisions, which inevitably makes for a happier outcome for all.

Economic Outlook

The economic landscape is in better shape now than it’s been since the ill-fated Mini Budget of September 2022. Last week’s report from the ONS (Office for National Statistics) confirming that inflation has dropped to 2% for the year ending in May, its lowest level in three years, is encouraging news for the property market.

Added to this, the previous week, the Bank of England confirmed that interest rates will remain steady at 5.25%, with potential decreases anticipated later this year. This economic steadiness is contributing to a stable property market, boosting the confidence of both buyers and sellers.

House Prices Stable

The recently published Rightmove House Price Index for June also confirms that the property market is stable, with virtually no change, a drop of £21 on the previous month, in the average asking price of property coming on to the market. This is what we have come to expect at this time of year and seems to be a familiar seasonal pattern of recent years.

The report goes on to confirm that the majority of buyers and sellers have continued their plans since the election was called, with the only sign of election caution being a slight drop in the number of new sellers especially at the typically more discretionary top-end of the market. Over the last four weeks, the number of sales being agreed has stayed steady at 6% higher than a year ago.

Buyer demand has also remained stable and is now 5% higher than last year. This supports Rightmove’s poll of over 14,000 people, where 95% of those planning to move home said that the election will not affect their plans.

The Local Dorset Property Market

Locally, the property market in and around our Dorset office remains unaffected by the election announcement. Buyer demand and the number of sellers listing their properties have remained steady since the Prime Minister called an early election.

It is reassuring to see stability in the local market, allowing buyers and sellers to take their time with decisions without feeling rushed into what is often the largest financial transaction of their lives.

We’ve observed an increase in the number of properties coming to market in June. With prices remaining steady, more buyers are feeling confident enough to make a move, encouraged by the stable economic conditions.