This time last year there was a lot of noise from many parties claiming that Jersey had a housing crisis, and that there weren’t enough properties on the market.
So, what is the current state of the property market? A quick check on places.je reveals some 1,430 properties available on their website.
Split into price brackets (this is not taking into account duplicate listings):
£100k – 300K – 91 properties (6.3%)
£300k – 600K – 481 properties (33.3%)
£600K – 900K – 323 properties (22.3%)
£900K – 1.2m – 128 properties (8.8%)
£1.2m – 1.9m – 203 properties (14%)
£1.9m – 2.5m – 61 properties (4.3%)
£2.5m – 10m – 121 properties (8.4%)
£10+ – 38 properties (2.6%)
In January 2022 there were approx. 400 properties available. Which then went up to 745 by August.
Taking the above splits into consideration, you can see how rising interest rates and cost of living have noticeably affected the local market (£100k-£2.5m). Usually when this happens the investor market steps in to balance it out. This year, due to the stamp duty increase on second homes, this does not seem to be happening. One must wonder if the Government really thought through the timing of that implementation.
What does this mean for the property market? In the short term we are probably looking at more property stock on the market than the last 4 years. This will especially be the case with flats & apartments, as many new developments are nearing completion. With fewer purchasers looking to buy (and those that are likely to be wanting a ‘deal’), vendors will need to consider accepting lower than expected offers in order to sell. In the past we’ve often heard “cheap money and no stock – it’s a crisis”. However, now there is plenty of stock and expensive money. It is worth asking if prices need to come down.
This may not go down well with some vendors, who (understandably) want the best price for their property. However, we believe selling at the right price can still be achievable. Contact us today to see how we can help you navigate the current market.