Market Review - April 2009
- Sep 30, 2009
Market Review - April 2009
Currently in the Multiple Listing System (MLS) there are 1999 active listings totaling US$1.855 billion. This is an increase of 3.04% (59 properties) in the number of listings on the market over last quarter and 0.05% (US$ 1 million) of the value.
There are 110, three bedroom homes on the market at an average price of US$774,613. There has been a decrease of 1.79% (2 properties) in the number of homes on the market with the average price going up by 28.75% (US$172,978) on average over the last quarter.
There are 387 two bedroom condominiums listed Island wide with an average price of US$514,497. These numbers have increased over the last quarter with an increase in 1 unit for a 0.26% increase in the market and the average prices have decreased by 2.05% (US $10,756).
There are 536 residential / agricultural parcels of land for sale island-wide at an average of US$435,904. This area has seen an increase since last quarter in the number of properties listed as 4.89%, or 25 properties. However, due to economic factors the value has decreased on average by 4.67% or US $21,347.
So far this year to date (April 2009) 104 listings that have been sold, amounting to US$46.4 million. This is a decrease over last quarter by 30.67% (46 properties) in both the number of sold properties and the value by 42.82% (US$34,712 mill). While a decrease was not unexpected, the size of the decrease is clearly indicative of the global economy catching up with us.
There are 290 properties that are under contract and scheduled for closing amounting to US$127.1 million. This is a decrease of 14.71% (50) in properties and 11.26% (US$16.1 mill) of the value.
In reviewing these numbers we are seeing only a slight increase in listing activity. This could be attributed to any number of factors from the economy to simply less properties available to list. We have now seen the “six months behind the US” syndrome come in to play in the decrease of sold units and the value of those sold units. These decreases are significant and clearly indicate that the Cayman market is being affected by a global economic downturn.
There is an old saying which says, “in the face of adversity there is opportunity” and this may very well be the case for the Cayman market in the next quarter and going forward. Elections have been completed in the US and here locally and governments have began to put forth their economic strategies. The foreign investor will be looking for opportunities and may be looking to move out of volatile markets and into real estate. Opportunities may be taken as a result of the reduction in stamp duty and efforts to provide other stimulus to the purchasing of properties. While we still must remain vigilant in our efforts to look at other ways to obtain favorable practices both in the development and buying and selling of properties, we may also benefit from what is traditionally a less lengthy downturn than is seen abroad and from the incentives implemented thus far. However, caution is still the watchword for this next period as we enter what is traditionally a slower season.