Our Director, Matt Brouard, was asked by BBC Radio Guernsey for his expert opinion on the booming property market in Guernsey over the last year, and what it has done to house prices.
The average local market house price currently sits just shy of half a million pounds. While this may seem high, Matt’s experience allows him to explain that it’s no real surprise. “The lowest average price in recent years was in 2018, with an average house price on the local market being £407,000. However, it had been up at £469,000 back in 2014. If you add RPI inflation over that period to £469,000, you arrive at over £500,000, so while the current prices are headline grabbing they should not be a surprise. The question is how far will they go?!”
Sales are currently up by 154 transactions from the same quarter last year. “It’s really reflected what our sales team have experienced, properties are selling faster, closer to asking prices, sometimes going above asking prices”. That increase is not a surprise to anybody who’s been vaguely following the property market over the last 12 months. There is certainly an element of catch up, we went into last spring feeling very confident and busy. The first lockdown obviously slowed progress, but then it all caught up at the end of the year.
But is it as simple as good news for sellers, bad news for buyers?
“Well quite often buyers are sellers and sellers are buyers, so it’s a different challenge”. Matt explained the interesting aspect are loan to values (LTV), the amount that is being borrowed in relation to the total price. At the moment it’s 80% on average, which historically isn’t that high either, so whilst first time buyers are probably having to borrow their 90%, and still get help from family etc, it doesn’t sound overcooked from a market point of view.
It’s really reflected what our sales team have experienced, properties are selling faster, closer to asking prices, sometimes going above asking prices
The volumes of Open Market sales have also significantly increased and have been the highest since 2008, this has partly been put down to the success of ‘virtual viewings’. People have purchased on the strength of a video or FaceTime walk throughs of the property.
Here at Cooper Brouard we can offer virtual viewings on some properties, so if you’re looking to buy, please get in contact! For those looking to sell, we are also offering ‘virtual valuations’. Call 01481 236039 or email firstname.lastname@example.org to find out more.
You can fill out our virtual valuation service form HERE