Latest statistics from the States of Guernsey confirm that the housing market slowed down during the third quarter of this year.
There were 138 Local Market sales in Q3, compared with 175 the previous quarter, and 234 the same time last year. Five years ago, during the same period, there were 251 transactions on the Local Market.
‘It has been a challenging market which is reflected in the decreasing level of transactions. While stock levels have improved, the depth of stock where there is most demand still remains an issue,’ said Swoffers director, Andre Austin.
‘Most vendors understand the need to be realistic and that certainly seems to be the message as we go into the New Year.’
Despite the slowdown, the mix adjusted average purchase price for Local Market properties increased to £647,889 in the third quarter of 2023, 7.8% higher than the previous quarter, 3.0% higher than the third quarter of 2022, and 54.3% higher than five years previously.
This quarter’s increase has been attributed to by an increase in higher-end properties transactions and is not a true reflection of the whole market.
The mix adjusted price is a measure of the value of the properties sold during the quarter, not a reflection of the values of individual properties nor the change in the value of any one property over time. Many factors, including age, location and quality, determine the actual value of individual properties.
The raw median price (realty only) of Open Market transactions in the third quarter of 2023 was £1,443,438. Of the ten agency sales Swoffers completed nine of them and we continue to dominate the market with 68% of open market sales to date. The average of the agency sales was £1,735,000.
‘Uncertainty over interest rates has meant that some buyers who are selling UK property or investments have had to delay their relocation. But, with its very simple entry process, friendly tax regime, and fabulous lifestyle opportunities, Guernsey remains a popular destination for those planning to leave the UK. As the Q3 sales figures show, Swoffers remains the agent of choice for the Open Market,’ said Swoffers Open Market negotiator, Simon Jones.
‘Now that interest rates are levelling off and with the UK tax year end and General Election looming we fully expect to see sales volumes increase over the next few months.’
The mix adjusted average monthly rental price for Local Market properties was £1,909 in the third quarter of 2023, 2.4% higher than the previous quarter, 10.6% higher than the third quarter of 2022 and 46.1% higher than five years previously.
As ever, a summary of each quarter should not be viewed in isolation; a more accurate picture of recent movements will be understood in the context of a whole year.