House sales fall after ‘flash in the pan’ 2021
House sales fell in both local and open markets last year.
New housing data from December showed that the number of houses and flats sold was down 14% over the year, while the open market saw a 24% drop from 127 sales in 2021 to 91 in 2020.
Local market prices continued to rise, up 13.5% over the year from £575,504 to £667,669.
Open market prices however dropped, by about £65,000 to just below the £1m. mark.
The total value of sales fell by more than £110m. from 2021’s record-breaking £966m.
Estate agents said the figures were just a return to the norm after a phenomenal 2021.
Savills director Nick Paluch said that 2021 had been a ‘flash in the pan’.
‘2022 is a good level compared to pre-pandemic numbers, and what we expected to see,’ he said.
‘The open market is more volatile to extreme numbers and can go either way. 2021 saw two £10m.-plus sales, and we didn’t see the extreme sales last year.’
Matt Brouard, director at Cooper Brouard, agreed.
‘2021 accelerated the market, because of the Covid effect there was an urgency for people moving in 2021, especially those who wanted to come from the UK, and although most people had visited the island, there were some people just buying without viewing.’
Mr Paluch said he felt the greater number of transactions in the local market gave a better picture of the state of the housing market.
‘The local market is a much bigger pool and a truer reflection of how the market is going,’ he said.
Looking ahead to this year, agents were agreed that both markets would be impacted by instability in the UK.
Mr Brouard said that some of the heat had come out of the market since the rise in interest rates.
‘On the plus side a lot of people still want to move house and a less frantic market may encourage them to start. The UK has some pretty big tax holes to fill and that may drive more people our way.’
Mr Paluch added: ‘What will be interesting is the effects of the instability in the UK. We tend to be a refuge from that. It could be that 2023 could be more like 2021.’
The States budget report anticipated that the tax return from document duty for 2022 would be lower than 2021, but has recently revised up its estimates by £5.5m. to a total of £27.5m describing the housing market has ‘continuing to be buoyant’.
