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There has been a dramatic fall in the number of homes being bought and sold in the island in the last quarter, according to new figures.
Published by Statistics Jersey this morning, the latest House Price Index report for the second quarter of 2023 showed that the number of properties bought and sold was 42% lower than this time in 2022.
There was an overall reduction of 1% in the market – the first decrease since 2016 – and the average price of a home has reduced by 4% since the previous high point of £709,000 seen in the third quarter of 2022.
Of properties purchased, 28% were not intended as main residences, which was a decrease from the previous quarter.
One-bedroom flats, two-bedroom flats and three-bedroom houses had all increased in average price, recorded at £356,000, £558,000 and £821,000 respectively.
Earlier today we published the House Price Index - Q2 2023 Report. You can read the full report here: https://t.co/iiHzzzy8mw pic.twitter.com/xneGGp9DeF
— Statistics Jersey (@JsyStats) August 17, 2023
The average cost of a home in the Island is now £666,000, slightly up from last quarter, which is over double the UK's at £286,000.
The report noted that there were a significant proportion of transactions (45%) as a result of new developments, which increased average prices for flats and meant the level of turnover would be 62% lower that Q2 in 2022 (rather than 42% lower) when excluding new builds.
Housing Minister David Warr said: "What is interesting is the speed of the correction – we have seen a dramatic turn in the housing market in just a few quarters."
He added that the "most recent" slump he could compare the figures to was the housing market crash of 2008.
"It is not the end of the road as there is still a good degree of correction to come – I don't think there is any doubt about that."
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