House prices drop again

AVERAGE house prices have fallen for the third year in a row.

01720984_Cropped

AVERAGE house prices have fallen for the third year in a row.

It is the first time in more than 30 years that negative growth has been record for three successive years.

Figures released today for 2012 show that prices dropped by one per cent compared with 2011.

The downward trend was driven by the falling prices of three-and four-bedroomed houses. The mean price of a three-bedroom house dropped by £24,000 to £487,000 in 2012 and a four-bedroom property by £9,000 to £671,000.

Comments for: "House prices drop again"

Optomist

Great news, affordable housing...NOT

James Wiley

Lies, damned lies and statistics... you need to read the small print on the statistics to see how they manage to produce these figures, which is basically by excluding all low value transactions.

A house last week which was marketed at £640,000 sold due to distress for £380,000 this transaction is one of many that are excluded.

Overpopulated

A house near me has been for sale for over a year for £2.6m it is now being advertised for £1.4m now that is a drop in price!

Lowerrent

It will drop further. The only ones buying are people who inherited money from their parents or already own and move house. Unless you're a professional (Lawyer, Doctor..), nobody actually earns enough to even get a mortgage for these properties, so it's a fake market. Politicians are worried about immigration but it's actually the other way around. Apart from a few potato pickers or builders nobody actually picks Jersey for business or investment anymore. It will be very interesting in the next few years.

More to come

Although it is has had a very negative impact, I do not believe the global economic recession is the sole cause of this fall.

Jersey for a number of years has operated a property market far removed from the normal economic principles of demand and supply.

To add to its woes, the island has shown very little competitiveness, but most worryingly, there has been ‘zero’ innovation within its main sectors. We are experiencing what Apple did to CDs.

To top it all, our fiscal focus means we are seen as the parasites of the global economy.

New legislation concerning LLPs et al is not sufficient to compete in the new era of digital economy and global fiscal tightening. Just read the latest economist.

The cost of the average family home is unrealistic and overvalued by 15 to 20 %. Commons sense dictates that.

For a generation, the housing system has generously nourished a section of the local population.

Put in layman’s terms, do not buy and if you can, sell!

Tim

Unfortunately most Jersey people have the British thinking, believing they will make profit and climb up the property ladder. In Mainland Europe the thinking is different, you buy and it's mostly for life so people don't rush into things. If you want a house, you save until you can buy it, or you're happy to live in an apartment but in Jersey people wanting a house buy apartments. It worked when there was space for development but not when an Island has reached it's economic peak. You can argue that buying is always cheaper than renting but not at these prices and on an Island with no future job security, or tourism industry. You might be stuck with a massive mortgage & lose your job next year & if the whole finance industry crumbles, who will even have the money to pay the rent you're looking for when you get a job offer elsewhere?

Jean

Jerseys selling points used to be it's safe for kids & great for them to grow up, job security & good wages, good schools & people bought because they felt at home + still affordable. Then people realised we can make profit and bought, but the above reasons were still a factor. Then people bought, because they didn't want to get ripped off paying rent, some still believed the above. When everything is unaffordable (no private schools), you have no jobs & it's not so safe, would you really say it's a great place for kids & you feel at home? Some will probably say yes but it's something to think about.

twob

Spot on more to come,How come our elected Politicians dont have the same logic and foresight ?

Paula

If I could sell my 5 bed house for £671,000, I would be happy to leave here and buy a place in the Caribbean or USA for quarter of that cost and then invest the rest in shares and live off the dividend. Its 25% down mortgage guarantee and no questions asked in the USA, even with debt, and a nicer life in a far nicer climate. Jersey is no longer the place to live. So, anyone wanna buy a 5 bed house with garden in St Saviour for £671,000 ? This is a very very misleading article when there are 4/5 bed houses for sale for £385,000, and still no one is buying them.

3 bed sold

Sold our 3 bed gaff in St S for late 4's a few weeks ago Paula.

What do you say to that?

Jimmy

Of course it will sell, their are enough people that still made profits & move around. Once this generation dies it will sell for 150.000

Lordi

Depends what you like, I wouldn't buy in Jersey either but you won't always have a nicer life in the USA + weather can vary from snow to heatwaves, hurricanes & earthquakes, depending on the area. If you invest in shares, it isn't a guaranteed income so maybe think before you sell:-)

Kermit the frog

you can move to america, but i wouldnt go on the better life style. It is generally more expensive in america, with higher taxes and astronomical health and insurance bills. plus.....its full of americans...urgh!

the thin wallet

the games up.

it was all way too much for a home .

a house is a home not a investment vehicle .

even better if its paid for ,more holidays .

thelastbean

Stop outside investors from buying up properties and keeping/pushing prices up. This is especially so in the flats market. Block this and prices will drop as the only people buying at the moment are external investors encouraged by our greedy estate agents one of which was promoting this on CTV.

If you don't live here you cant buy. This would correct the market downwards.

Korg

The investors aren't a problem, it's you who decides what you want to pay. If people didn't buy, then it wouldn't be interesting for the investor.

Phil Oakey

Greed! thats the thing that kills the Golden goose in the end.

We live in a small select development in the eastern parish. Our nice farmhouse cottage,purpose built,not a barn conversion is a stunning two double bedroom property, with a large private garden etc & on the market for £445,000,our neighbors cottage,which is "smaller" has an open garden which is built up & dark is also on the market for £500,000! even though it cost £10,000 less than our own originaly.

We dont regard ourselves as asking to much if you compare the two properties,which many have commented is nicer than the above mentioned.

Its also not a case of a misleading article so much as its just not an accurate reflection of what is.

For example its down to the"area" & surroundings.Our small hamlet comprises of Doctors & lawyers,not!people on benefits with eleven kids,tracksuits & a red BMW.

Exclusivity is something you pay for.

Its a given right!to those who can afford it,plus its better to live in a select house, than one in a scruffy backstreet,with ten bedrooms in town next to a takeaway.

Can't stand snobs

You never know hat goes on behind the closed ours of a snob. Stop thinking you are better than others. They may be far more normal than you.

the thin wallet

the person with the eleven kids , one wife and two lovers , does quite well , his life is paid for by your neighbours taxes. as a house husband , he is wearing his trackie , as he does the daily chores .

in fact his family are so big the only way they could be housed, was in a jersey heritage cod house and out buildings .

he even manages with the help of the eldest to mow the lawns on the weekend .

Simple Sid

Well done States of Jersey Goverment no control has destroyed the housing market.

James Wiley

Sorry it is because a) they allowed foreigners to invest and then b) guaranteed their mortgages with income support that the housing market messed up.

Government is the problem, never the solution.

Better than you think

Sorry but I just don't think this island is finished.

The island has had terrible times before and recovered - occupation.

What we are seeing now is negative growth over just a few years in time and after perhaps 15 years of solid growth.

Jersey unlike the uk and Europe has next to no government debt and taxes that are much lower.

Safety and STATES schooling compare well to almost anywhere.

The trust / financial and legal sectors will grow in time. The world is troubled and this is a safe haven.

Only those who can not afford their mortgages in the short term may lose out through having to sell quickly. Banks will i am sure move people to interest only rather than repossess.

People just need to tighten their belts a little, lose their iPhones, have less holidays, perhaps have one car as a family and forget unessessary private schools. Do this together with starting to think of your house as a home rather than a money making machine and life is not so bad. Certainly billions of people across the world would swap places with you.

Comet

Jersey unlike the uk and Europe has next to no government debt and taxes that are much lower. Dream on if you believe it + every country has debt. I live in Ireland and despite bad press & debt the quality of life is great. The people that moan are the ones that lost money in property and the same will happen in Jersey. If you think taxes in Jersey are lower, maybe calculate how much more you're paying for everything else. I relocated here and I don't even pay water charges, people are now complaining that it's coming which is standard in Jersey. I bought a lovely 5 bed house for less than 120K and now they want property tax which is not even 300€ a year (how terrible). The minimum wage is still higher here & despite recession there was more job creation than jobs lost this year, you can't say that about Jersey. Of course there are people suffering too and certain things like car insurance are more expensive but everywhere is different. Your sentence "The world is troubled and this is a safe haven" is very naive. You have no space left for economic growth and where does your food come from? Just look around you and you'll see that salaries aren't high enough to pay for these prices. I still love Jersey but the housing market is in decline end of story..........

Can't stand snobs

Sorry is this the Ireland that has had the IMF bail out and has bank liabilities that are bigger Han its GDP. I would take jersey over Ireland any day.

Love a snob

See, very ignorant thinking. At least they had a bailout and it can only get better. I still have a job that is safe & at I'll have my mortgage paid in 3 years when I'm 36 + I can produce my own food when the food crisis reaches Europe. It's personal taste but just because you hear something negative, doesn't mean it's all bad. It's still more attractive for business here and space left for development.

Enjoy your new neighbours

If you think Ireland is on its way back you are a dreamer. National bankruptcy will hang over the place for years, new housing estates continue to be pulled down, cutting the deficit will take ages and cutting the national debt a generation. As for industry what does Ireland really do.

Love a snob

Enjoy your new neighbours, what do you know. Ireland is the place to be if you're in IT, Google, Ebay, Apple, Oracle, SAP just to name a few, jobs are being created every day & agriculture plays a big part when Jersey and other places are hungry. I don't see any housing estates being pulled down & why should I care, I don't have to live in a housing estate if I can buy a nice house in a nice area for less than 150K. You've probably never been here but have an opinion, that's fine. Jersey is also Europe if you didn't realise:-)

Miles

It's not all bad Enjoy your new neighbours.

http://www.independent.ie/business/irish/irish-economy-to-grow-faster-than-rest-of-euro-zone-ec-predicts-29088344.html

Look at Germany after the war, it made their economy so strong and other countries will thrive again too. It's always best to invest when prices are low. If you want to make profit you certainly wouldn't invest in Jersey now, give it a few years and prices will drop at least another 20% or more.

Land of potential ire

Ireland sounds idyllic in many ways. The rain coming in sideways from the ocean should not come as too much of a surprise to anyone who has lived in Jersey.

However, what will happen when the natives eventually wake up and realise that they are being taken over by outsiders? Will the welcome evaporate, or worse?

Granted, there is plenty of space in Ireland at the moment but the potential is there for growing resentment towards outsiders, as is now happening in Jersey.

Comet

@Land of potential ire. It's not that bad. I'm half irish but born in Jersey & we all get on here. We have loads of graduates from abroad and the Irish are now thankful that jobs are being created and Lidl and Aldi offer cheaper food:-). Of course there will always be resentment towards outsiders (from a few) but it's far worse in Jersey. It happens across the globe from England to Germany, from the US to Australia. Regarding the weather, indeed there isn't too much difference to Jersey (might have 4 days more sun in summer) and the weather reports are never correct. We actually had some glorious sunshine out West (good surf) the last couple of days. It's still a great place here and not as bad as people make it. Of course Jersey is a nice Island (in one way) but not worth buying property anymore and would just live in a tiny flat I don't like and can't afford. I have a bit of both worlds here & enjoy the long summer evenings in my big garden with hot tub, in Jersey I was happy to even have a balcony.

Bowie 2

Well said!!!

Jersey is far from being the worst place in the world to live. In fact in my experience it's one of the best, yes it's expensive, yes houses are over priced, yes it's costly to get 'off the rock'. That's all because it's an island, all the other prosperour islands in the world suffer the same problems.

The global economic recovery is a long way off and with the exception of a few countries we're all in the same boat. If people stopped whining and looked at the positives they may just see that the grass is much greener on the island's side of the fence.

Chins up Islanders, time to get a smile on your faces and take on a positive view of life.

PS. I am in the UK right now and believe me it's worse here by a long long stretch! Feel free to try it for yourselves...........

King

Bowie 2, there are worse places but Jersey is overpriced & it's all a bubble that could burst soon. Depends where you are in the UK but I agree that salaries and quality of life are really bad in the UK (more England). You don't really have a middle class in the UK anymore but it's happening here. Scotland will do well in the next 20 years but people have to stop comparing Jersey to the UK. Work and live in other European countries and the quality of life is great, if you have education. Jersey is not creating jobs & salaries don't pay these house prices anymore.

Enjoy your new neighbours

If you think that Europe is so wonderful wake up and realise that their lazy attitude and over regulation will see their living standards fall substantially in the next 10 years. Just can not see France servicing its debt burden let alone Spain and Italy. Ireland has already gone with Greece and lost national sovernity.

Norm

How old are you Bowie 2?

Bowie 2

Old enough to have owned more than one house in Jersey, lived in numerous countries and have an objective view of what the state of the world in comparison to Jersey is really like.

Norm

Well that explains it. You only think Jersey is great because you made some profit and grew up in a time when money took you further. I'm sure a 25 year old graduate will tell you something different. So, you've been to every country, city & town across the world? I'm impressed

James Wilson

Bowie 2, have you really looked around. I've seen better social housing blocks across Europe (Germany, Austria, Belgium, Netherlands...) and in Jersey you spend your life savings to live in a block that's worse. I've also noticed that properties in Jersey have old heating systems that cost a fortune to run and don't keep the house warm. If you're luck enough to have a fireplace you'll only have damp walls. Of course you think differently because you lived in Jersey for so long and are over 35. I used to get scared too (traffic, change etc.) but it isn't that bad when you get used to it. The reality is that young professional people have to live in apartments that have the standard of social housing elsewhere and it's not the way forward. I agree that Jersey has some nice spots but it's not nice when the jobs don't pay anymore and your salary just pays the rent and some food.

Overpopulated

Suppose they are on interest only mortgages already? What will happen when interest rates rise

What will happen if they get divorced - or lose their job?

I have been told the banks are already repossessing

Can't stand snobs

Nothing in life is for certain my friend.

60 to 80 years ago the working class lived hand to mouth and rented.

They had far less but kids were fitter, more active, harder working and in most cases had better family standards. A return to core principles and a focus on what is really essential is no bad thing.

If everybody in jersey forgot about fleeing for a 2 week holidays in the sun and had time off here the GDP benefit would be significant and life would go on. It's about wants and needs. You need to pay your mortgage or rent your room, you want material items but when you cut through it all how much happiness do they bring. I don't fear my house price falling or my salary not growing. I did fear the bubble continuing to grow and the western world continuing to lose touch with the core essentials of life. This period in the long run will be good for us all and most of all our children.

Phil Oakey

Sorry! that"s absolute rubbish.

If you add the cost of living,& combine the figures,you end up with the cost of 88% higher than almost anywhere in the civilised world!

The states schools are relatively poor,have you seen any child prodigys here?

Your blinkered & biased,& if your going to say how great it is here,then you should get out a bit more.Its people like yourself that make normal people want to get out as soon as possible.

Comet

I agree Phil, Jersey has some nice beaches & walks but that's the only selling point. We have beaches here too and a low paid worker can at least have a decent home. I could buy a holiday home in the sun + pay off my mortgage here with an average salary and would still be better off than in Jersey. People must think Jersey is Hollywood, get real............

Can't stand snobs

88 per cent higher, rubbish. Buy less, eat less, put a jumper on and turn the heating down. Trust me you will survive and probably be healthier so that you can enjoy our fine beaches and all that is free here.

I am from London but would not go back, my kids thrive in the states schools and as for child prodigies then trust me I would prefer they just had manners and a work ethic.

Si

Child prodigies aren't made, they are born that way, a fluke of nature if you will! Jersey has a relatively small population compared to other lands, hence no known child prodigies at the moment, but one could be born tomorrow.

James D

The trust / financial and legal sectors will grow in time. I do agree with the legal sector, when all properties are bank owned:-)

The future

There are lots of houses that have been on the market for years and their owners have not dropped the price low enough to sell.

The market is slewed and screwed owners cannot afford to drop prices low enough to sell buyers are not confident that they are getting value for money.

Eventually it will implode, already we have owners who wish they had taken the offer that they had years ago and this will continue. If you can sell now get out of the market as you are losing 10% a year taking inflation into consideration.

Kone

If you think the average salary in Jersey is £32.000 (if even true). A couple both earning average would only get £256.000 from the bank but average house price is around £400.000. Couples need a massive deposit which is unrealistic for most, unless they live with their parents untill they're 30 or parents give money. Jersey isn't tropical paradise, or a place where movie stars & wealthy people come too anymore, so these prices are fake. There is still wealth from the last generation but in 2030 we'll see a complete different market.

Overpopulated

What really pushed house prices up

100% mortgages

Interest only mortgages

Rent rebate scheme

The States introduced the rent rebate scheme as I was told at the time, with no costing, no economic thought as to the effect

Result investors piled into property because they are 'guaranteed' rent by the government.

This is one of the things that will have to be cut back on as the government runs out of money, they should start now

Leving Sinking Ship

Sold my 3 bed in SS also for £460,000 valued at £510,000 before the crash. Took the view that it hadn't stopped losing value yet and worse was to come.

Bought a nice 3 bed detached for £150,000 in Lincs banked the change.

Enjoy your new neighbours

Sure lincs is lovely but it is 150k for a reason. What's more the criminal underworld in the uk, made up of basically criminals from just about everywhere makes this place somewhere I would not want to bring up kids.

EX-ISLANDER

Are you perhaps encompassing the entire UK with that remark? I assume so because I left Jersey many years ago and settled in Lincs and it is in many ways how Jersey used to be before they opened the floodgates.It's a huge county of course but the part I live in is unspoilt,crime rate very low,schools very high standard,healthcare excellent.People are friendly and care about one another.As I said- a bit like Jersey used to be!

Skegness Mafia

So why wouldn't the criminal underworld from 'just about everywhere' also start to gain a foothold in an affluent place like Jersey? Surely not because our super efficient police?

Love a snob

If he found a nice house for 150K leave him. People live in different places and I'm sure Lincs has some nice areas too. St Helier is a tiny town and has some bad areas too.

James B

Why wouldn't you want to bring up kids there? I'd rather bring up my kids in a nice house with garden, than a 2 bed apartment in Jersey with no money left. Kids can also play on the streets in other parts of the world. You must have been on the Island for too long. We don't have kids but I'm sure they'd love to play in a garden of 0.6 acres & no main road at the front. Town is only 15mins drive away with leisure centre & coast or lakes are never far away. We don't have to be rich, as it only cost us 140K and we finished it they way we want. To have that in Jersey, we would have to be earning 60K + each. Jersey used to be great for bringing up kids, when it was still affordable but forget that now.

Phil Oakey

No!bring your kids up in "safe" Jersey with Curtis warren & a bloke that kills seven people!

Orca

Makes me laugh, Jersey is finished....not the place it was....etc etc

Having lived all over the UK I chose to return home, Jersey is, was and will still be one of the best places in the world to live and call home.

Yes it's not perfect and there is a lot wrong, but it is still a beautiful island that I am proud to call home.

Despite the best efforts of our inept government we are still in a strong economic position in comparison to other places.

Can't help but think there is a bit of the green eyed monster with some Jersey people that feel they still have a god given right for everything here...and if all else fails blame everything and anything on something/ someone else.....

Phil Oakey

Orca you need to get out more!

Orca

What a strange post....I need to get out more...very strange...

Still I suppose its not like your usual doom and gloom and what a terrible place Jersey is...

Perhaps if I got out more "one" could visit your hamlet...and spend time socialising with all those doctors and bmw's you prattle on about...

See how the other half lives...." pip pip what ho old boy and all that.."

Ian

Ours had been on the market for 3 years after redundancy forced us to put it up for sale, dropped it by £80k, still no takers.

However as we have managed to keep up with the mortgage over the past 3 years, despite no help or understanding from the bank, social security etc, we have now taken it off the market and will battle on.

Propaganda

4 bed house in st Brelade sold 4 years ago to first person through the door for asking price of £845k.

Same house now with new kitchen and bathroom has just been valued at £725k.

Yes I am sure we all belive the statistics unit.

Has anyone else noticed how they didn't put the 4th qtr 2012 prices in this latest report, for some reason thay just put the yearly averages?

Has anyone else noticed how the statistics in the rpoert do not go back as many years as they used to?

Has anyone else noticed that they only started including share tranfer sales in the report in the last 3 years?

all of the above, in my opinion are being done to manipulate the stats so that the property market appears far better than it really is?