A brief quarterly review of the Cayman real estate market, that says a lot.
Here is what you need to know from my year-on-year comparison of the industry’s first quarter.
In the world of property, supply is the number of homes available for sale. And in the Cayman real estate market, supply is down 13% compared to last year.
My team and I meet weekly to review current real estate stats and trends. For 12 consecutive weeks, we have watched the number of new listings decline. And in a small marketplace, this amplifies the already high demand and drives prices. While I am writing this, there are 736 residential listings in the CIREBA MLS. An all-time low, a true seller’s market.
#2. Days on Market
Days on market is the average time between listing a property for sale and getting it sold. Along with supply and demand, it is a big indicator of market confidence. When the average time on market comes down for properties, it reflects high demand. Right now, across all sectors in the Cayman real estate market, properties are selling fast. And I mean fast. Sold signs are posted 40 days quicker compared to this time last year. A small number, but a strong sign of market confidence.
#3. Demand for Cayman Real Estate
How many people are looking to buy in Cayman, right now. And ultimately, how many sales are happening. My team tracks buyer enquiries and island-wide sales, to get real-time insights into Cayman’s real estate demand. Our listing views and inquiries are up approximately 20%, and the average sold value and list price has increased by 17% industry-wide. In short, demand is up, substantially.
The increase is partly a result of overseas interest. Because when it comes to attracting international buyers, Cayman has a lot to offer. Covid-free, tax-neutral, the 7th highest GDP globally, quality real estate, a low crime rate – the list is long. And Cayman’s price per square foot, for luxury properties, is still 15 – 20% below other comparative markets like Bermuda, Turks and Caicos, and Monaco. So it’s no wonder that new-to-Cayman enquiries are soaring and the high-end sector is actually running out of inventory. Shake your head in disbelief; I know I am, but purchasing property sight-unseen is now normal!
#4. Commercial Sector
The commercial real estate sector beats to its own drum. And as projected, it has been jolted by the pandemic. While all other Cayman real estate sectors have seen an increase in the average list and sold price, the commercial sector has decreased since 2020. A trend we expect to continue. But it is not all doom and gloom. When borders reopen, and population growth begins, businesses will need to expand to meet the new demand. So it’s a downward commercial trend, but one with an end in sight. Opportunity knocks!
#5. Cayman Real Estate Value
Buying real estate can be daunting. And buying into a seller’s market is tough. It never seems like the right time or right price, especially given the surge we have seen in the last 12 months. (Click here to get a quick estimate of the new home you could afford.) However, after reviewing the pricing post-September 11, Hurricane Ivan, the Great Recession, and now the COVID Crisis, I can confidently tell you that pricing in key locations follows a trend. It pauses, stabilizes, and then continues to rise again. It doesn’t go down! And Cayman is no exception. Safety, security, harmony, and stability are the cornerstones of all healthy ecosystems, and the Cayman real estate market is just that. To its very core, Cayman’s overall value-proposition is safe and secure, and this confidence is what continues to fuel the market in good times and bad.
Everyone, and I mean everyone, is waiting for a unicorn – the perfect property at the perfect price. But believe me, it’s more important to invest based on the strength of the overall property market. Think bigger picture, and your money will go further, longer. Which also happens to be the perfect transition for my final tip.
#6. Property Plan
Real estate is a long-term asset. ‘Secure tomorrow, today.’ I have said this at least a thousand times before. (One thousand is literally the number of families we have helped find homes in Cayman.)
So the question really becomes, have you considered your property plan? For your future, for your families future, establishing a property plan will maximize the value of your Cayman real estate investment. I know, it can seem complicated. But that is why my team and I are here, to simplify your property journey. Reach out, send us your questions. We love to chat about real estate.