The average price of a local market home in Guernsey has gone up significantly and it now stands at nearly £600,000.
Despite a cost-of-living crisis and rising interest rates, the latest statistics from the States property prices quarter two bulletin reveal the big surge. The average price of a local market home went up 4.5% on the previous quarter, and up 18.5% year-on-year.
In total, there were 236 local market sales during the second quarter of 2022, which was an increase on the previous quarter, but a drop compared to the same time last year.
Interpreting the figures, Swoffers negotiator Antonia Thomas said they reflected the buoyant state of the market.
“We are continuing to see high levels of demand, with demand far outstripping supply, so it’s inevitable that this will push prices up. There is a general awareness of inflation, the cost of living, and interest rates going up, but both of Guernsey’s housing markets have shown a lot of resilience to these factors so far.
“The statistics show that vendors are getting closer to their asking prices, and that’s a reflection of the determination of buyers to secure a home. At the same time, the turnaround of properties is high and buyers need to act swiftly when they see something they want.
“We anticipate a levelling off on prices in the future leading to a period of greater stability.
The local economy remains strong and there are plenty of buyers who are monitoring the market on the side lines and waiting for the best time to buy or for the perfect property to come to market. Despite the challenges, the banks are lending, and home ownership remains a keen aspiration for many people. Guernsey has an enduring desirability, so people feel confident about buying a home here.”
The Open Market statistics showed that average prices remained pretty much stable from the previous quarter and up slightly from the same quarter in 2021. Craig Whitman, Swoffers Managing Director said:
“The high volume of sales over the last couple of years means that stock levels have fallen in recent times, and there continues to be an appetite for individuals to relocate to Guernsey to take advantage of our stability, independence, safety, and low tax environment. To date, so far this year there have been 56 sales concluded, of which Swoffers has been responsible for 31 – more than 4 times any other agent on the Island. We continue to promote Guernsey across new markets, with further trips overseas planned for our team this year to continue to push all that we have to offer as an Island.”
In the lettings market, high demand means that rents have also gone up. The average rental price for a local market home is £1,817 per month, representing a 9.3% rise on the previous quarter, and 14% higher year-on-year.
Laura Gorvel, Local Market Lettings Negotiator said:
“Mirroring the sales market, the Letting market continues to experience unprecedented demand across all levels. We see no sign of this abating in the short term but also recognise the dangers of this heated market and the pressures it brings to bear on those trying to find a home, especially those who have been looking for some time, without success, and have to leave their existing home soon. Regrettably, even if we could magic up another 50 properties overnight, this would not be sufficient given the current demand levels we are experiencing.”
Headlines from the latest States property bulletin:
- The average price of a local market home is £598,963
- The average time between a local home going on the market and its subsequent sale continues to decrease. There has been a small uptick in the time taken in the open market
- The gap between advertised prices and actual sales prices continues to narrow
- There were 19 open market sales during April, May, and June
- The median price of the open market transactions was £1,366,843
Out of the 236 local market transactions, the highest number of sales was in the £600,000 to £999,999 price band. There were 22 local market transactions over £1 million. The total value of all conveyances recorded by the Greffe during the second quarter was £194 million.