THE average price of a local market house has risen to £283,806 compared to the UK’s £175,400. The latest figure, released by the States Policy and Research Unit, shows an increase of just over 3% up to the quarter ended June 2004. And despite the Bank of England doing its best to slow the UK housing market by making successive interest rate increases, it is not deterring local buyers.
‘Overall, the local economy seems to be thriving, with most people confident that the housing market will remain strong,’ said Swoffers director Spencer Noyon.
‘Interest rates are still comparatively low, employment levels are exceptionally good and the market remains busy.’
He was not surprised by the latest quarterly rise. At the end of last year, the average jumped to £288,105, but fell to £275,231 at the end of March 2004. This was due to a combination of factors: a number of high-value local market properties sold between October and December last year and the traditional post-Christmas lull reflected in this year’s first quarter.
‘Our own house statistics show that between March and May this year, the number of sales completed was up some 100 on the previous three-month period.
‘The average price of each property sold during the same period, however, was down slightly from £281,000 to £278,000.
‘Much of this slight reduction in the average price can be explained by the substantial
number of apartments being sold at present - either at plot stage or in their completed state.
‘Indeed, our statistics showed that one in every three sales between March and May was an apartment.’
Martel Maides local market director Keith Enevoldsen was equally optimistic about the state of the local economy.
‘It is positive and people are pretty confident,’ he said.
‘The only thing that might have a long-term bearing is the oil prices - if they stay high, it may have an effect.’
Mr Enevoldsen said that the actual true value of properties was relatively static, or keeping pace with inflation.
He added that it would take until the second week of September before the statisticians could get a true picture.
Goldridge Estate Agents director Kelvin Seeds also believed that the local market was stable and that buyers were not being put off by interest rate rises.
‘Buyers haven’t been put off by other factors. The new apartments are holding their own and the older ones might be showing a slight reduction, but apart from that, there is no rise or fall,’ he said.
Mr Enevoldsen believed that people had already factored in a 5% base rate so were prepared for recent rises.
All agents expect the market to pick up after the school holidays had finished.
Article posted on 11th August, 2004 - 12.00am
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