Boom in house sales as activity returns to levels last seen in 2008

Estate agent John Quemard

John Quemard, who runs Quemard Properties, says that an increase in buyer confidence, particularly within the traditional starter home market, has resulted in housing turnover being at its highest level for seven years.

However, he added that the market has returned to a more traditional structure, with people only buying what they can afford.

Mr Quemard made the comment after the release on Thursday of figures from the Jersey House Price Index.

The statistics show that overall housing market activity between April and June this year was seven per cent higher than for the same period last year.

House sales are on the rise in Jersey

Between April and June this year, the mean price of a:

  • one-bedroom flat was £216,000
  • two-bedroom house was £418,000
  • three-bedroom house was £503,000
  • four-bedroom house was £708,000[/breakout]

The statistics, which were compiled by the States of Jersey Statistics Unit, also reveal that the average price of a one-bedroom flat was £15,000 higher in the second quarter of this year than it was in the first.

However, the average price for two-bedroom and three-bedroom homes dropped by £20,000 and £21,000 respectively during the same period.

Mr Quemard said these figures reflected the fact that Jersey was moving to a ‘more traditional market’.

‘Years ago people used to buy property that they could afford,’ he said. ‘They were not looking to bite off more than they could chew.

‘What we are now seeing is the market returning to that more traditional market with people starting off on the bottom rung of the ladder.

‘We can say that because prices for one-bed flats have increased. The turnover of one- and two-bed flats represents two-thirds of all transactions in the last quarter.

‘There is a lot of demand at the moment for these type of properties.’

Property sales have increased in 2015

Despite warnings from chief economists that interest rates could begin to rise from the start of next year, making it more difficult for Islanders to get their foot on the property ladder, Mr Quemard said buyers have not been deterred.

He said: ‘If you do the comparison year on year, the members have all said that the first six months of this year have been noticeably busier than the first six months of the previous year, not just with inquiries but turnover sales.

‘We are encouraged to see that turnover is higher in quarter two. It is the highest quarterly figure since 2008, which demonstrates a confidence in buying.

‘We normally term the 2008 era as the boom years.

‘The current market is stable, with a higher volume of sales going through.

‘Despite the threats of an increase in interest rates, the market remains strong.’

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