Average Guernsey States Housing Price Misinterpreted?

14th November 2016

Plastic houses sitting on piles of pound coins

Media headlines on the latest average house price report suggest plummeting house prices, but is that true?

The report published by the States of Guernsey, shows the current Average Local Market House Price is £412,792, which is 5.0% lower than the previous quarter and 7.6% lower than the third quarter of 2015.

The report also states that “during this quarter there were several sales of properties of particularly low value”. This factor alone significantly affects the calculation of averages, weighting the measure of values and levels of activity.

A more accurate representation of the market is the fact that there was a 7% rise in the number of house sales, compared with the same quarter last year (159 in Q3 2016 compared to 149 in Q3 2015). This increase has been a continuing trend throughout 2016.

The increase in the number of lower priced properties also signifies that mortgages are more obtainable to first time buyers, than in the same period of 2015.