House Prices rise, but turnover falls

22nd May 2013

Jersey's latest House Price index is a mixed bag, with what seems like evidence of a slight recovery in the market with house prices rising for most property types, but the drop in the number of property transactions by a third on the previous quarter seems to contradict this.

Director of Lending at Skipton International, Nigel Pascoe said it was disappointing to see the small increase in turnover in the last quarter has been replaced with a large decline: 'The figures show that it is important not to take one quarter's results in isolation. Whilst we are seeing some small increases across most property types, except for three bedroom houses, the slowdown in the number of properties being sold shows we are still in a period of correction.'

The price of three bedroom houses has now fallen back to 2007 levels when the market saw big increases in prices of 10% that year and 20% in 2008: 'After a period of relative levelling off, prices for 3 bed houses are back down to 2007 levels which is further evidence of the correction process , but overall prices are still way above the levels seen prior to 2007 . The recent affordability survey shows that average families are still struggling to be able to afford a house, so it is unlikely we have seen the end of the market correction just yet. Confidence needs to return to the market, and whilst we are still getting a good number of customers needing Jersey mortgages, there are many who are still waiting either because they are concerned about affording a house, or because they are waiting to see if prices have bottomed out.'