The average cost of a house in Guernsey now stands at almost £428,000.
That is an increase of £17,000 compared with prices for the same time last year.
According to the offshore bank, Skipton International, they say the island is experiencing an increase in market activity with a total of 228 property transactions taking place last quarter.
They say that it was homes in the £300k-£399k bracket that enjoyed the strongest growth.
Despite high property prices in the island, the head of Skipton says growth in the market is encouraging.