Average cost of two-bed house now over £500,000
NOW is a great time to get on the property ladder as mortgage rates are at a record low, according to an estate agent – despite new figures showing the average two-bedroom house now costs over half a million pounds.
The latest house price index produced by Statistics Jersey shows that two-bedroom flats have recorded their highest mean price to date, at £427,000.
And the mean price of a two-bedroom house sold in the latest quarter was £519,000, up £28,000 from the end of 2019.
Prices of four-bedroom houses dropped 11%, while two-bedroom houses went up by 6% compared to the previous quarter.
Despite the rises in prices, John Crepsel, of Crespel Properties, said there had been a spring bounce in the property market from first-time buyers.
‘At the moment I don’t think the market is very different from before the lockdown. The mortgage market is really good and the rates are low so I think it is a great time to get on the ladder,’ he said.
‘People haven’t been able to spend any money for seven or eight weeks so they’ve been able to save. The market is active, there has been a bit of a spring bounce and that has come from first-time buyers.’
Jackie Matthews, of Indigo Estates, added: ‘Since we’ve been back open we’ve picked up straight away; there has been no dip. Properties are coming on the market and are going under offer quickly.’
And mortgage broker Paul Winteridge explained that 100% mortgages had been taken off the market, but mortgage rates have dropped.
He said: ‘We are processing applications and banks are still lending. There are still 95% mortgages out there and the interest rates are down from 3.5% to 2.9%, so it is a good time to buy.
‘A lot of properties have come onto the market in the last week or so and the market is looking good.
‘People try and predict what will happen, whether a recession will happen and it will hit the market but we just don’t know what will happen.’
The report also highlights that the turnover of properties has dropped, which may be down to the Covid-19 pandemic.
The report states: ‘The turnover of properties was 11% lower than in Q1 2019; while there may have been some impact on the level of turnover in Q1 2020 due to the developing pandemic situation in Jersey, the majority of the latest quarter occurred prior to the introduction of Covid-19 related government interventions
‘Overall housing market activity, on a rolling four-quarter basis, was essentially unchanged compared with the previous quarter (Q4 2019) and was 6% higher than in the corresponding quarter of 2019 on a rolling four-quarter basis.
‘Advertised private-sector rental prices increased by 1% during the year ending Q1 2020 compared with the year ending Q4 2019.’
Breaking down prices, the cost of a one-bedroom flat is £10,000 lower than the previous quarter, now at £271,000.
A three-bedroom house has gone up £17,000, to £649,000, and a four-bedroom house has dropped to £934,000, £117,000 lower than the end of 2019.
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