Property market boost
Tuesday 27th April 2010, 3:00PM BST.
Carol Bisson, head of local markets at Barclays Wealth in Jersey
MORE evidence has emerged of a pick-up in Jersey’s property market, with the average value of mortgages issued by a major lender up by 15 per cent in the first three months of 2010.
Barclays Wealth has issued figures that it says shows that confidence in the property market had increased. The bank said that it expected that 2010 would be significantly better than 2009.
The figures come a fortnight after Acorn Mortgages released figures to show that the number of property transactions completed in the first three months of 2010 had risen significantly when compared to 2009.
The head of local markets at Barclays Wealth in Jersey, Carol Bisson, said that the economic downturn had had far less impact on the Channel Islands than other jurisdictions around the world.
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Funny how these mortgage lenders make these statements when only last week there 10 pages of properties up for sale in this paper.
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A 15% increase from a low base is next to nothing, it could even be down on a year earlier.
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Property is dragging on the market.
I can easily name two hundred and fifty houses on the market that have been there since last September, more than six months in anyone’s terms.
Plus there are the flats, I know of seven hundred and fifty in new build that have been up for sale since last June.
Plus there are a good thousand of investment flats that the owners would really like to sell!
If I really started counting I could find lots more…
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Moo ha ha ha ha
“The head of local markets at Barclays Wealth in Jersey, Carol Bisson, said that the economic downturn had had far less impact on the Channel Islands than other jurisdictions around the world”
Tell that to the 20 colleagues of mine made redundant last week.
Reminiscent of Terry Le Swear’s “What recession” comment and as ridiculous as Gordon Brown’s “this is the end of boom and bust.” All laughably incompetent.
Why have we the highest unemployment in the island in a number of years?
Just because one lender has lent more this year, does not reflect the state of the market. (What if the inverse is true of several other lenders). House prices are a reflection of interest rates, wages, lending multiples and a splash of supply and demand.
Lets face it folks all these people do is talk the market up to protect their own interests.
The reality is, banks are not lending as much, so fewer people can buy at last years prices. Wages have fallen in real terms (fewer pay rises/bonuses etc) further affecting demand. Mortgage interest rates are still high ~4% and we all know the only way is up…..baby (higher rates lead to declining asset values).
Folks are concerned about job security and it’s not just limited to finance. Who would want to be a teacher right now or other States worker? The market needs to correct and retrench – otherwise it will stagnate and folks will leave Jersey.
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£995 cash back on a Barclays Penury for Life mortgage if you apply now, so go for it lads and lasses!
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I agree with the other comments. Talking up the market and why are there so many properties for sale? The days of a 100% / 7x plus salary plus mortgage is over. A major correction is therefore now happening.
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No. 5 Pip Clement – Why do all your comments bring ‘gloom & doom’ to everyone. Of course there is a worldwide recession but the lady from Barclays is stating that Jersey is fairing better than most and she is correct.
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I think the representative makes a fair point in that relatively speaking Jersey has had it easy in this recession to date. However we all know that other key factors in buying and selling houses, especially over here, is fear and greed/envy. This is where the likes of Barclays and Acorn know they can play on a lot of peoples’ insecurities by say things are picking up and you really ought to overstretch yourselves to get on that mortgage ladder etc. Given the extreme amounts you have to pay/borrow over here for often very poor quality buildings, I think you need to apply cold logic about the whole thing rather than getting geed up by people with a vested interested in telling you things are rosy.
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Totally agree that Jersey has not felt the same effects of the recession as the mainland (UK & Europe). However, see this for what it really is – a Press Release from Barclays Wealth to drum up mortgage business. The only way sterling base rates are going to go in the next 12-18 months is up. Now is not the time to be saddling yourself with more debt, as rates will inevitably increase and what seemed like an affordable mortgage will become a grind to pay. The time is now to keep your assets liquid as opportunity in terms of savings and investments is just around the corner.
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I am a fairly successful private investor.
I ignore all the puffery from local estate agents, independent financial advisers, etc and I have an average of a 66% return.
I would never buy a property on the basis of the advice of the estate agent selling it or a unit trust on the basis of the manager’s advice.
I am a bit dubious about; Castle Quay which is now more than 18 months behind schedule for opening, the Esplanade Quarter which has months of announcements but no action.
La Providence aka Goose Green Housing was saved by a big State’s purchase, the remaining properties are selling very slowly.
As my grandfather said, never bet your money on the bookie’s advice!
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No. 10 Pip Clement – your Grandfather was not entirely correct. I took the bookies advice this year on the Grandnational and won a tidy sum.
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