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One of Guernsey's estate agents is warning that although housing market conditions have changed, demand continues to dominate the sector.
Matt Brouard - Director of Cooper Brouard - was commenting on the release of the 2022 property bulletin. The States published the latest data this week - showing the mix adjusted average purchase price of a property is now close to £630,000.
Pictured: The mix adjusted average purchase price of properties in Guernsey during quarter three of 2022.
"Property sales continued to be strong for the Local Market in Quarter 3 2022 and we can see that the market has risen 13.5% since the same quarter last year and the average Local Market sale price was almost £630,000.
Supply of new properties to market remained an issue so a drop in the volume of transactions was expected. This is also reflected in a lower average time on the market for properties. The percentage of “new build” sales increased as developers reacted to the improved market and they overcame COVID delays. Developers are still looking for sites to develop to add to the housing stock.
Open Market remains strong with a number of high value transactions over the last quarter. There is still a limited supply on the Open Market especially at the entry point to the market but we continue to have a high volume of enquiries, especially those looking to relocate in Q1 2023. Cooper Brouard has a number of OM properties due to complete before the end of the year at various price points.
Pictured: Matt Brouard, a Director at Cooper Brouard.
The very recent political turbulence and subsequent economic impacts have changed the outlook for the local housing market. The formerly over-heated market now faces some headwinds. Increased mortgage rates will affect buyers’ ability to borrow, however, Cooper Brouard is continuing to experience good market demand so we expect prices to steady and look forward to having a better supply of property to offer.
A reduction in advertised rental prices reflects landlords’ response to the changing economic landscape and many not applying full RPI increases to rents. Demand has levelled out, but supply remains limited."
