Local market house prices have risen by 19% year-on-year.
The latest Guernsey Residential Property Bulletin, for the third quarter of 2021, shows the mix adjusted average house price at the end of September was £554,290. It has to be noted that the mix adjusted price is a measure of the value of the sales during the quarter, not a reflection of the values of individual properties.
Compared with the previous quarter, the average price has risen by 9.6%.
‘Whilst these sound like big price increases, there are a number of factors that affect the mix adjusted average price. A number of high value transactions can skew the overall final figures somewhat. For example, last year there were around 35 Local Market sales over £1m and this year we are already over 60 and counting,’ said Local Market Director, Andre Austin.
‘It was widely anticipated these figures would be high because of the unprecedented level of demand and extremely low stock levels. We expect the last quarter to be a little quieter as we move into the winter, and going into 2022 we hope to see increased stock levels across all markets to satisfy demand.’
There were 285 Local Market transactions between July and September – 12 fewer than the previous quarter and 8 more than the same quarter of 2020. On the Open Market, there were 36 sales in the third quarter of 2021. The raw median price (realty only) of those Open Market sales was £1.35m.
‘Demand remains high and we expect that to continue into next year. Guernsey is clearly becoming an increasingly attractive relocation destination,’ added Open Market Director, Shauna Clapham.
Properties sold more quickly in Q3 than in previous quarters. This has been a developing trend for the last few years.
‘It comes as no surprise to us to hear that the average time between a property becoming available for purchase and the time of its sale has been decreasing. The shortage of stock has meant that people have become much quicker at making their decision to buy, due to a fear of losing out to another buyer,’ said Mr Austin.
The mix adjusted average rental price for Local Market properties was £1,599 in the third quarter of 2021, 0.4% higher than the previous quarter and 16.2% higher than the third quarter of 2020.