The latest States of Guernsey Property Prices Bulletin is released today. Matt Brouard, has examined them and gives his opinion on the figures and the market in general.
A buoyant first 3 months of 2022 saw the supply of houses coming to market outstripped by demand from the many buyers eager to get on the housing ladder, move to a more suitable home or invest in the property market. According to government figures Local Market properties values were up by 12.4% on the same time last year, and with almost 200 sales it was the strongest 1st year quarter since 2007.
Continuing high levels of demand in the rental sector has also seen average Local Market rental prices increase by 10.9%, well ahead of RPI at 5.6%.
So what does this mean for anyone looking to buy, sell or rent? Well, we know from our many years of experience that the market is cyclical in nature. Rapid price rises are generally followed by a period of slower growth, so for anyone looking to release equity in their property the question is how close we are to the tipping point. The truth is nobody knows, but if you are looking to downsize or reinvest now is a good moment to take stock, have your property valued and assess your options.
For buyers, there has been a frustrating lack of choice but the good news is that, even with interest rates starting to creep up, it is still a good time to get finance in place and be ready for when the market steps up a gear. Lenders are now lending in greater multiples of salary, offering low and long term fixed interest rates at historically very competitive rates and have some good 95% mortgages for first time buyers.
In the rental sector little has changed with regards to stock so for anyone looking to rent, the advice has to be to register with agents and be ready to respond to any properties you see, it is essential to act quickly. The need for more lets means that landlords can expect good returns, so anyone who has been considering renting out property, now is the right time to join the market.