Guernsey’s property market was busy at the start of 2020 but really boomed when the island started easing its way out of the first lockdown, in June. Pent-up activity provided the initial boost to the market, which was then bolstered by low interest rates making mortgages more appealing, and more cash in the economy thanks to the lack of spending over lockdown.
The number of transactions certainly reflects how busy our expert team was in the last quarter of the year, with a total of 345 Local Market deals completed; that’s 68 more than in an already-busy Q3, and 154 more than Q4 of 2019.
The average price of a Local Market property in Q4 of 2020 was £493,174 – 5.9% higher than the average in Q3, and 11.8% higher than Q4 of 2019.
Simple economics dictates that an increase in demand results in an increase in prices, and this is far from being just a Guernsey phenomenon.
Across the water in Jersey, the latest figures (from Q3 2020) show that the average property price there is £533,000. The much-desired three-bedroom house recorded its highest mean figure to date, at £687,000.
In the UK, annual house price growth rose to a six-year high of 7.3% at the end of December 2020, according to data from Nationwide. The East Midlands saw the strongest growth in prices in Q4, but prices were up across all regions.
So Guernsey is not alone. The pandemic has caused a worldwide reassessment of priorities and has resulted in behavioural shifts that have contributed to increased demand for property and rising prices.
Rising house prices are not a Guernsey phenomenon, they’re a national one. Fortunately, there is still relative value to be had in the market and our expert team can help you navigate it and find the right property for you. Get in touch today to start your search.