First annual decrease in Jersey housing prices since 2013, report finds

The average house price fell by 3% in 2022, the first annual decrease in housing prices since 2013

A working household in 2023 was unable to service a mortgage affordably on a two-bedroom flat, a report has found.

The house price report for 2023 found the average price of a house fell by 3% in 2022 - the first annual decrease since 2013.

Statistics Jersey said the turnover of properties was 58% lower compared to 2022, when excluding new builds.

Two-bedroom flats and four-bedroom houses recorded their highest annual mean price seen to date.

One-bedroom flats and two to three-bedroom houses saw annual decreases in mean prices, and all property types saw decreases in annual median price.

The report found that housing affordability had "worsened" on an annual basis, finding all property types were less affordable to purchase in 2022.

A working household could afford to service a mortgage affordably on a one-bedroom flat, but not for a two-bed, the report found.

It said although prices had dropped, affordability had been outweighed by higher mortgage interest costs, "resulting in worse housing affordability overall".

In the fourth quarter of 2023, dwellings sold were 2% cheaper, compared to the same quarter in 2022, and new developments had increased the mean price of two-bedroom flats.

The overall housing market activity was about 13% lower than in the previous third quarter of 2023, and 44% lower than the same quarter of 2022.