We get it. Not everyone finds real estate stats as fascinating as us.
So instead of boring you with numbers, inundating you with percentages and averages, we are delivering just the key takeaways. Digestible nuggets of information, apprising you of the Cayman real estate market performance and giving you insight into what is to come.
So without further ado, I give you big picture Cayman real estate.
Decline in Available Listings
The trend continues. For over a year, we have consistently seen a decline in the number of available listings. This past quarter, there was an increase in new listings compared to Q2 2020, which is not surprising considering we were in lockdown last year. However, despite an uptick in new listings, persistent high demand keeps depleting the new supply, so much so that the number of available listings continues to drop. We have charted a 14-month consistent decline, hitting new records lows. Further evidence of this is the ongoing decline across all real estate sectors in the number of days on the market, the time between for sale and sold. In short, the market is ‘undersaturated’. Supply can not keep up with demand, as homes are selling faster than new properties are listed.
Decrease in Back on Markets
Last quarter we saw a continued softening of back on market listings. Meaning there are fewer failed contracts or listing renewals. Deals are closing on time, and listings aren’t sticking around - a powerful indicator of a confident market. This is also validated by the ongoing decline in the average number of days on market for listings.
Increase in Offers
Every quarter for the last year, the number of new offers have consistently surpassed the previous quarters. That means the total number of offers to purchase submitted continues to rise, despite upward pressure on pricing and border closures. I’ve said it before; this is another strong indicator of market confidence.
Solds vs Offers
Now, this is very interesting. For the first time in over a year, the number of sold properties have risen above the number of under offer properties. So while month on month, the number of new offers continue to increase, there has been a big jump in the number of sold properties recently. This important shift in the market is worth noting. It alludes to how the market will trend in the next few months. So if you are curious about what is to come for the Cayman real estate market, then read on, my friends.
The number of sold properties surpassing the number of under offer properties demonstrates a softening in demand. A drying up of the pipeline, so to speak. Don’t get me wrong, properties are continuing to sell, and in record time too, but the rate at which the demand has been increasing will slow— a relaxing which has a knock-on effect.
Why the slowdown? Summer is here, and there is an exodus of residents vacationing from the island, heading off to reconnect with family and friends afar. A seasonal shift compounded by a lack of tourism, low listings count, and no decrease in pricing. As a result, we anticipate a small slowdown over the next quarter.
This slight easing of the market may present some opportunities for buyers to capitalise on while most are distracted with travel and summer family plans. So take our guidance and ready up your finances and property plan now. A great place to start is Jen Powell’s blog: Mortgages in Cayman.
The minor softening of the Cayman real estate market in the third quarter will be short-lived. We are confident it will rebound after the summer holidays, with the gradual return of tourism, seasonal workers, and new resident population growth. In brief, the Cayman real estate, just like many of us, plans to pause, recalibrate for summer, and then hit the ground running for Q4.
We have gathered this information from multiple sources across multiple sectors to provide a concise overview of what is happening in the Cayman real estate market. We hope this report has brought you clarity, not confusion. And as always, should you have any questions, please reach out. We are happy to provide you with a more bespoke and detailed report. One that is customised to your needs and whatever stage of the property journey you find yourself at.
It’s your property journey. We are just here to make it an informed and enjoyable one. Let's chat.
Email: [email protected]
Instagram: @mikejosephrealestate#Buyer #Seller #Tips #Trends