Guernsey house sale volumes leap as prices stay firm- reports Skipton International

Friday 27 August 2010

Sales of homes have jumped over the second quarter of 2010, with 38% more transactions completed than in the first three months of the year. Against the same period in 2009, volumes are a healthy 16% higher, according to data released this month by the Guernsey States.

Prices have also held on to gains made over the past 12 months, with average house prices reaching £346,750, slightly higher than at the same time in 2009, although on a quarterly basis, this figure has slipped back 4.8% on the position in March 2010.

Commenting on the latest Guernsey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Guernsey and Jersey mortgage specialists said, “Buyers have realised prices have now firmed up considerably, so interest in the market has jumped and we are seeing far higher levels of activity. In retrospect, we can now see that the low point for prices was the first three months in 2009. Since then, the market has steadily improved.”

There were a total of 248 transactions in the period, consisting of 231 local market and 17 open market sales. The local market figure is the highest seen since June 2008. The proportion of apartment transactions continued to fall back to 21%, whilst the proportion of house sales has risen to a figure of 79%, the second highest total since the start of 2007. The value of open market transactions slipped back slightly, although this data needs to be treated with caution, as the sample size is small. Nevertheless, of these 17 transactions, 5 were for over £1 million in value

Nigel Pascoe adds, “The change in the make-up of the market is significant, as we are now seeing more higher value homes being sold. In 2009, apartment sales dominated the figures, touching 40% at one point, but now we are seeing a return to the longer term trend of houses making up the majority of sales figures.”

On the mainland, according to the UK Land Registry, over the year to June 2010, prices rose on average by 8.4%, with the monthly rise set at just 0.1%. Data suggests that the recent rise in UK values and in particular those in London may be slowing. In London, the average annual rise has slipped back to 10% in the period to the end of July, according to the Financial Times House Price Index.

Nigel Pascoe ends, “We certainly seem to be seeing the start of a new phase of the market – strong volumes and prices remaining broadly stable, which indicates a return of confidence. We are still likely to see some volatility over the next few months as the UK economy rebalances, but with UK Base Rate again being held at its record low of 0.5% for August, this will help underpin confidence in the local market.

Our two year fixed rate mortgage priced at 3.99% remains extremely popular both with buyers and those looking to remortgage. Our commitment to provide a truly personal service and to ensure our borrowers have the right product for their personal circumstances is as vital as ever in this market.”