With demand continuing to heavily outweigh supply, most estate agents across the Island are finding it increasingly difficult to provide adequate new instructions of properties for sale.
This is the most serious lack of stock on the market we’ve experienced for years. Demand is huge, created by a perfect storm of factors, including:
- Record low interest rates
- Changes in people’s work/life balance
- Working from home requiring more space
- Restrictions on travel increasing savings
- Growing population
On average, every property that Le Gallais lists on the market currently sees more than 20 requests for viewings, often with multiple offers of the asking price received.
Buyers offer above the asking price
It has become quite commonplace in some brackets of the market for multiple offers being made at the asking price for the same property. In this situation, prospective purchasers are asked to submit “best and final” offers above the asking price.
Q2 2021 Jersey Property Index stats:
- One bedroom flats sold for an average of £315k
- Two bedroom flats sold for an average of £494k
- The average cost for a three bedroom house was £806k
- The average cost for a four bedroom house was £1.28m
Source: itv.com
Although there is a distinct lack of available stock on the market, there are still a record number of property transactions completing through court, proving the market is moving during a time when property prices have increased by up to 18% in the last year.
Off market sales are part of the supply problem
A growing number of the properties currently under offer or selling haven’t been advertised on the open market. This is due to many vendors waiting to put their houses on the open market until they find something suitable to buy first.
We are seeing a vast number of vendors wanting to secure a buyer ”off market”, who is able and prepared to wait for them, thereby putting them in a stronger position to act quickly when the right property comes along for them.
This is having a knock on effect with a lack of stock available on the open market preventing some purchasers the opportunity to view and offer. This leads to a very fast paced but also frustrating market to be looking to buy in, but will only change if the current heat comes out of the residential sales market.
How do we start getting back to "normal"?
Ideally, in time, vendors will choose the more traditional way of selling and place their property on the open market thereby increasing the stock levels and choice for prospective purchasers.
If you are currently thinking of selling or buying, contact the sales team on 766689 who will be happy to have an informal chat and give professional advice.
Le Gallais Estates are the longest established estate agency in the island with a vast wealth of experience and a knowledgeable team who constantly study the market trends to help you make your move.