HOUSE prices are finally stalling across Dorset.

And many homes in Dorset are being sold for slightly less than the original asking price, estate agents said today.

They say house prices are at a standstill and offers lower than the full advertised price are now often accepted, suggesting the tide is turning towards a buyers' market.

Estate agents say homes are not fetching the over-inflated prices they were last year, and the market has settled to a 'realistic' level after years of housing boom.

Rising interest rates have hit the market, but estate agents say Dorset prices are being cushioned from a severe crash because of the number of people who want to re-locate to the area from the South East.

Their comments come the day after property company Hometrack published a survey claiming house prices are falling nationally and supply is outstripping demand.

The company's figures reveal the average house price in Dorset has remained at £200,400 over the last month - the first period of stagnation for years.

The county has become used to massive year-on-year rises - the average house price only three years ago was £136,500.

Some house prices advertised in the press have been slashed by thousands of pounds in recent months.

A four-bedroom detached house in Dorchester was on sale in the Echo for £319,950 on July 29, and the price was dropped by £10,000 to £309,950 only a week later.

And £3,000 has been chopped from the price of a two-bedroom end of terrace home in Weymouth - initially valued at £142,500 - within the last three weeks.

Tony Gregson, senior partner at Hull Gregson Hull's Weymouth office, said: "Prices are not falling but offers are having to be considered.

"Buyers are not paying the full asking price as much as before.

"We are finding houses are taking more time to sell."

He added that the average length of time for a sale has risen to 12 weeks from eight weeks a year ago.

Julian Bunkall, from Jackson Stops and Staff in Dorchester, said: "Some vendors have been tempted into a taking offers lower than the asking price."

He believes the housing market is 'pausing' after years of continual price increases and owners must be level-headed about how much their home will sell for.

Paul Ryan, Bradford and Bingley's Weymouth branch manager, said: "Prices are steadying out. Over-optimistically priced houses are not going to sell. But there is a good, strong market for houses that are priced sensibly.

"A year or more ago it was considered reasonable if a person paid around £2,000 more than they had first wanted to.

"Now we have started to see a slow-down in house price inflation or see it still to a level state, people are not prepared to pay this extra money."

Ralph Harwood-Penn, senior negotiator at Dickinson Bowden in Dorchester, agreed price rises have slowed but said the market is staying buoyant.

He added that many people living in the South East are moving to Dorset for a quieter lifestyle.

John Wrigglesworth, of Hometrack, believes interest rises are partly to blame for the current plateau in prices.