The ‘mix adjusted average purchase price’ for Q4 was also 5.9% lower than the previous quarter, while being 47.5% higher than 2018.
The bulletin also shows an increase in local market transactions during Q4 of 2023. There were 150, which is 12 more than the previous quarter.
Additional headlines:
- The four quarter rolling average time between a Local Market property becoming available for purchase and its subsequent sale was 168 days for properties purchased in the fourth quarter of 2023.
- The difference between the maximum advertised prices compared with the final sale prices of Local Market properties increased this quarter. The final sale price was, on average, 8.2% lower than the maximum advertised price in the fourth quarter of 2023, compared with 4.5% a year previously, and 7.4% in the fourth quarter of 2018.
- 2.7% of Local Market purchases during the fourth quarter of 2023 had been built in the previous twelve months. This compares to 2.8% in the fourth quarter of 2022.
- The raw median price (realty only) of the 7 Open Market transactions in the fourth quarter of 2023 was £1,462,500, compared with £1,755,000 in the fourth quarter of 2022.
- The mix adjusted average rental price for Local Market properties was £1,922 per calendar month in the fourth quarter of 2023, 0.7% higher than the previous quarter, 11.4% higher than the fourth quarter of 2022 and 44.0% higher than five years previously.
You can read the full bulletin ONLINE.
Commenting on the latest bulletin, Stuart Leslie – Head of Residential Sales at Savills Guernsey – said:
“The figures in the most recent bulletin don’t necessarily come as a surprise. The rise in interest rates and increase in the cost of living led to varying degrees of turbulence in the housing market throughout the course of last year. Consequently a lot of people were sitting tight and waiting for the situation to improve before committing to a move, which is why we saw a drop in the number of overall transactions year on year. That wasn’t unique to Guernsey – it was happening in the UK and elsewhere as well. However, with inflation now heading back towards the Bank of England target of 2.0% and more stability in the mortgage markets there’s every reason to be optimistic for the spring.
“The market is still likely to be price sensitive, but best in class well-maintained homes are attracting plenty of interest. New buyer registrations are also better than expected. The Local Market has already been busy and we’ve been called to value a number of properties – a sign that confidence is beginning to return and people are readying themselves for a move. We’re also starting to see more activity in the Open Market.
“Falling lending and leveraging costs should translate into a wider range of buyers with less pressure on budgets, and we could well see enhanced interest from re-locaters in the coming months with a general election on the horizon in the UK.”