The average price of a home in Guernsey has increased, despite market demand falling over the last year.
An average home sold for £638,267 in the fourth quarter of 2022, an increase of more than 51% from five years earlier.
However, only 181 local market homes were sold in the fourth quarter, 53 fewer than the previous quarter, resulting in a 14% decrease.
The average renter in Guernsey has also seen increases in monthly costs in local market properties.
Stuart Leslie, from Savills Guernsey, said: “Guernsey’s property markets of the last 12 months have continued to be defined by strong demand versus restricted supply.
"However coming off the back of a record-breaking 2021 – and in the face of significant political and economic upheaval in the UK and abroad – it’s perhaps unsurprising that activity levels have cooled in terms of the number of transactions.
"Interestingly though, sales above £1m increased, possibly indicating less of a reliance on borrowing toward the higher end of the market."
Richard Hemans, IoD Guernsey’s lead on economics, said: "Local market house prices increased by 15.9% year on year, which is the strongest annual growth for many years and higher than the significant rises seen during the pandemic. However, the number of transactions declined by 14% and is now back to pre-pandemic levels.
"Meanwhile, open market house prices increased by 6%, which is the lowest growth since the pandemic and the number of transactions fell by 23%.
"Guernsey’s housing market remains underpinned by a shortage of supply, strong household finances, the attractiveness of the island and the States population policy."
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