The latest Jersey House Price Index reflects large increases in the value of local homes. The average price of homes on the island has risen by six per cent in the last quarter and by 12 per cent compared with the first quarter of 2017.
Turnover of properties was down, suggesting that price inflation is the result of demand outstripping local supply.
Skipton International said it views the level of price increases as unsustainable, but is urging islanders not to take these quarterly statistics in isolation. For those looking to move, it remains a good time to put a home up for sale, with a ready market of buyers.
The price of most property types rose in value in the first quarter of this year, with only one-bedroom flats dropping marginally in price from the final quarter of 2017.
Four-bedroom homes increased in value the most, with the average home of this size now costing £949,000, an increase of £114,000 on 2017.
Lorraine Mclean, Mortgage Sales Manager at Skipton International, commented: “There have been suggestions we are experiencing a boom in the market similar to that of 2007 prior to the crash, but we believe the market is different now. The mortgage industry has moved on greatly since then and stricter lending criteria means homeowners are in a better position to weather changes to the market.
"However, we do not wish to see house prices continue to rise beyond people’s affordability. Growth has to be gradual and maintainable.”
During the quarter, there was also a large increase in the number of high-value two-bedroom flats sold, the largest rise since 2012. In particular, the proportion of transactions for higher-end flats valued at over £550,000 more than doubled from the previous quarter.
• To view the latest Jersey House Price Index click here