Housing market picking up slowly
Saturday 1st May 2010, 3:00PM BST.
The housing market is picking up, but slowly
HOUSE prices could go up towards the end of the year, according to property specialists and estate agents.
They say that although the transactions at the start of the year were slow and prices had remained stagnant, the market is picking up.
Mortgage Shop managing director Peter Seymour said that it was still a buyers’ market. ‘Prices are still negotiable,’ he said.
‘There is still a falling market, but as levels of activity slowly increase, the prices are going to bottom out and we may even see a modest increase in property prices this year.’
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Peter Seymour says the same thing every quarter and lets face it people like him want to get the market going.
But again he seems to be totally oblivious to the fact that there are hardly any jobs out there, banks won’t lend unless you have a wad as a deposit and that most houses and flaqts are way over priced which is mainly through careless lending in the past anyway.
I do not know anybody who thinks ‘its a buyers market’ but I do know many who think ‘its an over priced greedy one’.
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a buyers market, offer less.
still a home is out of the reach of many.
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The simple fact is that for many younger people the middle rung of the housing market is way out of reach.
A lot of this type of owner occupier property is in the hands of the late middle aged who would like to cash in and move to a cheaper place with a big wad in the bank.
But no one can afford to buy at the asking price with the big deposits and poor prospects in a lot of jobs.
Interest rates are bound to increase, more so if Cameron wins the General Election, I predict several years of at best stagnation and may be even falls in real terms as inflation bites away at values.
The strange thing is that Brown and Labour are more laissez faire and friendly towards the city and finance in general than the likely winners, a Conservative / Liberal coalition that will be keen to play the new broom and clamp down.
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This could have been reported as ‘Peter Seymour states for the tenth quarter running that the property market is recovering on the basis of no evidence’
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Speaking as someone who saved for many years to buy my own home I don’t mind if prices drop. It means nothing to me and others who already own and permits others to join us. I don’t plan for my house to be sold until I’m dead, I bought for somewhere to live not to speculate.
Let the market drop, it might teach these greedy swine some humility, OK I’m dreaming there but a few tough years for the speculators is no bad thing. More regulation for estate agents would help, it’s about time that the largest purchase most people will ever make was better regulated. You should have to enter into a legally bimding contract to buy and sell a house with financial penalties for those backing out.
I do hope that interest rates stay low though because our taxes keep going up and there’s only so much in the pot.
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HOUSE prices could go up
but there again house prices could go down. Peter Seymour is a statistics star, well done!
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It sounds as this is a good thing? A house price crash would be good to help the young and poor, but oh then the rich would buy all the houses so the poor have to rent at extortionate prices.
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This is one mans opinion. However, society has changed and with first time buyers struggling to get on the ladder, and entering the property market later in life, once they are on the first rung, they may not be in a rush to move up, what with legal fees, reduction in mortgage interest relief etc etc.
I personally have got to the stage where I view my house as a roof over my head. Packing up ones clutter, lining my lawyers pocket, taking on more debt, paying stamp duty etc etc is not even on the agenda !
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The cost of housing is definitely rising because the banks are lending again and mortgages are now more easily available. It’s as simple as that.
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Prices could go up.
and pigs could fly.
offer 20% less,
and it’s still too high.
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So the JEP now decides that a mortgage broker is a property expect. Phd in commission taking now makes you an expert?
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One day, Jersey will wake-up.
Soon rented properties will be the norm in this island, those on a poor to middle income will be stuck in the rental market dreaming of buying.
So great, the market is on the up as will the prices – to buy what, a flat or house that is poorly constructed with no consideration to the quality of the finished product.
Thanks States of Jersey for allowing this!
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Is that good news?
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The prices for houses are ridiculous over here. A rabbit hutch starts at the best part of half a million pounds. How long will these last before they have to be rebuilt for whatever reason? In my opinion 30-40 years by the looks of some of the builds I have seen.
No place I know of has had it so good for so long. I would say it has been a licence to print money for the last 20-30 years.
I live in my own house but I’m not bothered what the value of it is, it is a home not a money making machine as many in Jersey seem to think now. If prices fell others could afford to buy a property, especially first time buyers who should still have access to states loans like in the past.
Estate agents and the like want sky high prices as commission/profit is generated on price. The higher the price the bigger the commission/profit. Also in Jersey estate agents have it easy as unless a property is really dire someone will buy it. In the UK people have more choice and are more picky, not so in Jersey.
I myself would limit a person’s ability to buy multiple properties over here so as to spread out the number of properties amongst more people, rather than allowing those with bottomless pockets to buy up any available property and cause prices to rise yet further due to their ability to over bid for any given property should they so want. Better to have as many people as possible owning so as to have an asset which can be handed down to the next generation rather than lots of asset poor people having nothing to fall back on IMHO.
It is time for a change for the better. This is the problem with this capitalistic system it doesn’t reward the whole rather the individual at the expense of the whole.
It annoys me that people can renage on a promise to buy right up to the point of raising one’s hand in court. It is time this was stopped. I would put a 10% penalty clause for backing out unless a genuine reason like subsidence has come to light in the mean time. I would also put a 10% penalty clause on the seller who wants to pull out because someone else has offered them more money. An agreement should be an agreement, once both parties have seen their lawyers and signed on the dotted line in my opinion.
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A house should be a home, not a never ending investment, lucky my mortgage is paid. after 25 years, but I fear for my children. How will they ever afford this. And Mr Seymour is right, with only so much land and TLS wanting 100,000 people on the island, what hope for our children. I never thought I’d say I be better of else were. I think others are now feeling the same. But not with Cameroon. Maderia sounds good to me after this winter. Every week that goes by there seems to be another reason to leave home. Last one out put out the lights please.
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Jersey born and raised…..but South Africa for me in the near future.
£100k will get you a great 3 bed bungalow with ample garden and swimming pool. Plus the weather in summer time isn’t too bad either!
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No. 16 BS Deluxe – South Africa is alright if you can persevere the extreme heat and isolation.
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BS Deluxe
You could get a box in one of the townships even cheaper.
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“HOUSE prices could go up towards the end of the year”…
This is horrendous news for young jersey families trying to build a life for themselves in the place of their birth.
But it’s great news for “property specialists and estate agents” not to mention property developers. I’m sure the Council of Ministers will be very happy.
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I get the feeling this is being said to try and increase sales. Estate agents have been emailing me the same houses for over a year now, yet when I question them they claim that lots of sales are taking place. Last article I read on house prices said another 10% drop before the end of 2010 was a real possibility.
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PJG & Toasted
Some places in St Helier are probably worse than a lot of townships :-0
I’ll stick to the beautiful Durban coast instead thanks
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Durban coast.
Then you can have a nice friendly drive through the Transkei (don’t forget your gun)for some shopping in Cape town. Don’t stop for a swim though the sharks have fins and teeth over there.
“Some places in St Helier are probably worse than a lot of townships”
I smell a “slight” exageration, how much time have you spent in the townships ?
South Africa has its good points, but beware the grass is greener on the other side of the hill attitude. Selling up and moving out can put you in a position where you cant afford to return should it all go teats up.
Don’t burn your bridges is good advice.
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I am a Jersey born – I am lucky – I have a very good job. Im 23, and still living with my parents
Here’s the situation – the banks will not lend more than 5 times your gross salary. I dont want a flat, I want a house. This means, to buy a house at the low end of the market (£400,000), I need to be earning £80,000 p.a. This is ridiculous. I love Jersey so much, and would love to stay here. But I am starting to look elsewhere, because I dont see why I should be put in this position.
I am also sick of the irritating group of Jersey people who never stop complaining, and generate rumours about an ‘establishment’ in Jersey’s government.
It seems to me that Jersey is beginning to become a problematic place to live. Poor governance, bad policies have meant that the most important things have taken a back step.
Its soooo sad, but I think things are only going to get worse here in the future
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BS, South Africa has the greatest income inequality of any major country i in the world. Hopefully your move and motives will benefit the whole community over there.
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No.23 Matt M
“I dont want a flat, I want a house”
This is the problem with alot of people hoping to buy in Jersey. In order to buy my house I had to buy a flat to start off with and WORK MY WAY UP.
At 23 years old I think you are expecting a bit much to be able to purchase a house straight away by yourself.
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It won’t be for a few years yet….I still need to save the £100k for my “mansion” over there
PJG
I wouldn’t believe ALL the media scaremongering about the crime in SA because it is a beautiful country with some wonderful people and fairly safe communities outside Soweto & Jo’burg.
Last time I was in Durban we went down to the beach as some fishing boats were coming in to see if we could buy some fish for a braii. The fishermen said they were not allowed to sell it to us…….so they GAVE a yellow tipped tuna to us free of charge. I have never seen this type of generosity in all my years in Jersey.
Yes there are bad places and high crime……they have this in UK too. To be honest I’d feel safer walking the streets of jo’burg than London these days.
My comment about St Helier was tongue in cheek. I was just trying to point out there are some ****holes here too
There is a whole world outside of this rock, some places are worse but there are plenty that are better…..where money isn’t the be all and end all.
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Myview
I think Matt was really pointing out the high salaries people would need to have in order to qualify for a mortgage to buy an average Jersey house.
How many average workers (even in finance) earn over £80k…..or how many couples for that matter earn over this amount?
You may have bought a flat “to work your way up” but I bet you sold it for a decent profit during the property “bubble” to enable you to buy a house.
This cannot be sustained and is the reason prices are so ridiculous now in my opinion. In today’s economic climate and with the insecurity within Jersey’s finance industry there is no guarantee any flat purchases as “investments” will realise a profit of this sort in the future.
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No.23 I agree with No 25, a flat is perfectly fine for a 23-year old, most of us do work our way up the ladder. I fully understand not wanting a flat, but that doesn’t magically make an affordable house appear. This time around my partner and I are ignoring all flats, it’s not even a consideration, this is mostly for health reasons which (along with some business reasons) will actually make it more cost-effective for us to live in a house than a flat. However, we are a good bit older than you and we have both done our fair share of time in flats and worked our way up the ladder.
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#26 BS Deluxe
‘Yes there are bad places and high crime……they have this in UK too. To be honest I’d feel safer walking the streets of jo’burg than London these days’
But of course crime and safe streets is not a problem in Jersey is it……;0)
Makes me laugh how often some people on this forum are so quick to play the ‘UK = crime = hoodies = bad’ card.
To be honest, I’d feel safer walking the streets of Jo’burg or London than Jersey these days……..
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Robin hood
Get a grip and perhaps read my comment in the context it was written!
BTW Jersey is a kindergarten compared to London and Jo’burg in relation to crime…..perhaps you should see more of the world if you think Jersey is bad!
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