Jersey house prices move ahead against stable backdrop
Average house prices rose by 5% in the three months ending September 2010, compared to the position at the end of June 2010, according to data released this month by the States of Jersey. Over the calendar year to the end of September, average prices have remained stable.
The last three months have seen a resurgence of property sales in the four bedroom house category, with values in this sector moving ahead noticeably to an average figure of £754,000 compared to £695,000 at the end of June. Overall, the average price of all homes in Jersey is now £500,000. Average values of three bedroom houses, by far the most popular sector in the market, now stand at £518,000, up from £496,000.
Commenting on the latest Jersey housing data, Nigel Pascoe, Director of Lending for Skipton International, the Jersey and Guernsey mortgage specialists said, "Prices in Jersey are now showing healthy signs of stability. After the weakness seen in the first quarter of this year, on average, prices have now stood stable for some two years, so avoiding the quite steep falls we have seen in some parts of the UK, for example."
Volumes have also recovered well, with the best performance in the one bed flat sector where the number of sales has increased fourfold, albeit from a low base, but nevertheless, this figure is now standing at more than twice the long term average. Sales volumes for both two and four bedroom houses also grew in the quarter. The total number of sales reached in the three months to September was 225, up from 182 at the end of June.
In the UK as a whole, according to the UK Land Registry, over the year to September 2010, prices rose on average by just 5.2%, with the monthly fall of 0.2% recorded, the first fall for six months. The picture for UK prices in general is now very mixed, with some evidence suggesting the recent mini-boom may have run its course, as the latest annual rise is the smallest figure seen since December 2009. In London, the average prices fell during the month by 0.6%, giving an annual rise of 8.8%, down just over 1% of the position at the end of the last quarter.
Nigel Pascoe ends, "We are now cautiously optimistic that in Jersey the property market is entering a new, more positive phase, with both volumes and prices advancing gently. Prices have avoided the downward spiral seen in the UK and now both buyers and sellers appear more confident. There is a range of mortgage products in the market for all classes of buyer to choose from, including our 100% loans and our "no mortgage fee" offer is available for applications started before the end of November. Realistically, we must still expect some volatility over the next few months as the UK economy continues to rebalance and as the widely publicised public spending cuts take effect.
Our 2 Year fixed rate mortgage priced from 3.29% remains extremely popular both with buyers and those looking to remortgage, as does our 5 year product from 4.19%. Our commitment to provide a truly personal service and to ensure our borrowers have the right product for their personal circumstances is as vital as ever in this market."