In the current context of the COVID-19 pandemic the pace at which we are adapting is notable. From the way we transact, to the things we may be looking for in a property, to the way we view homes, change is afoot. Where we are not noticing much change is in the sales prices of properties. The Seller sentiment seems very aligned and there does not appear to be a rush to participate in a sell off.
1503 Property Group conducted a short survey between April 17-20, 2020 of some of our fellow Real Estate Professionals and, among other questions agents were asked the following:
What proportion of your existing customers (pre-curfew) are expecting a lower price than before the pandemic?
More than two-thirds of our respondents reported that 70%+ of their current customers are opportunistic and will be looking for a deal.
How has vendor sentiment changed since curfew orders were announced?
The vast majority of our respondents were aligned here and say that less than 10% of their vendors have lowered, or are discussing lowering, their prices.
Market uncertainty remains, but there are things we do know:
While there is currently a clear divergence between buyer and seller expectations we attribute it primarily to global market fears, however most major financial institutions, including Goldman Sachs, JP Morgan, Morgan Stanley and Wells Fargo are all predicting a sharp V shaped recovery. If their predictions are correct, most have the US in positive GDP by Q3 and all have the US in positive GDP growth by Q4, 2020.
We suspect that a return to normalcy in the global markets will help reset a return to some state of normalcy for the local real estate market as well. Obviously with travel restrictions in place and country by country border openings still to be determined we need to further assess the impact that slow tourism in the short term will have on real estate sales.
What we do know is this…. Cayman will emerge from this crisis as a winner in the war against Covid-19 and the Cayman Islands Government’s sound resolve in navigating through this tumultuous time will only strengthen the value proposition for property ownership.
The 1503 Bottom Line
Transacting in an uncertain market place may pull you out of your comfort zone and you shouldn’t do it without a Real Estate Professional on your side. For buyers looking for deals, there are still some out there, call us, we’ll tell you where they are.
Sellers that see light at the end of the tunnel and are holding firm on their pricing, we get it, we have an optimistic view as well. Whether you’re a buyer, seller or looking to become one, call us, we’re here to help and have the knowledge and experience to help you navigate this market.