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The turnover of properties in Jersey stands at its lowest figure for potentially more than two decades, as a result of what one industry expert described as a "perfect storm" for the housing market.
Figures covering the first quarter of this year show that 114 properties were sold from January to March inclusive, less than half the equivalent figure from 12 months earlier.
In its latest House Price Index, published his morning, Statistics Jersey said the turnover figure was the lowest "since at least 2002", with one estate agent suggesting the previous low-point may have come far earlier.
The index showed that the average price of a home in the island across the first quarter of this year was 2% lower than in the final quarter of 2023.
Most property types saw a decrease in price across the period.
Overall housing market activity, on a rolling four-quarter basis, was around 17% lower than in the previous quarter and 51% lower than in the corresponding quarter of 2023.
Earlier today we published the House Price Index - Q1 2024 Report. You can read the full report here: https://t.co/TPkISXuVkk pic.twitter.com/lkTT6iGaa7
— Statistics Jersey (@JsyStats) May 2, 2024
On a rolling four-quarter basis, advertised private sector rental prices were 3% lower during the year ending 31 March, compared with the equivalent figure from a year earlier.
The latest report also showed that, of the 999 transacted during 2023, nearly one in four were not the main residence of the purchaser, while less than a third (27%) were bought by first-time buyers.
On a rolling four-quarter basis, advertised private sector rental prices were 3% lower during the year ending 31 March, compared with the equivalent figure from a year earlier, the stats showed.
Reflecting on the latest turnover statistics, Broadlands Director Roger Trower described the situation as "a perfect storm", making specific reference to the 'Jersey premium' on mortgage rates, as well as the extra stamp duty on second homes, which he said had "killed that part of the market".
"It's affected many of the smaller properties that used to be at one end of a property chain, but now those aren't selling and so the chain no longer exists," he said.
Jersey's Consumer Council has repeatedly highlighted the impact of the 'Jersey premium' on islanders, and Ministers previously said they would speak to UK banks to "encourage them to be as competitive as possible" on mortgage rates.
The Jersey Financial Services Commission wrote to the leaders of institutions operating locally to ensure that interest rate pricing and account closure policies provide a "transparent and fair experience for customers".
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