Current Market Trends
March 2006
By Valerie Levy

In the last quarter of 2005 demand for housing remained strong and supply short, we are therefore still experiencing a Sellers Market.   Resales are still attracting multiple offers but the rush to purchase properties in new developments has slowed somewhat as purchasers have become more selective, looking for quality while preferring to deal with developers with a proven track record.

The rental market remains buoyant and residential property rentals ranging from US$1600 to US$2200 in the townhouse and apartment segment are the most sought after. Developers and investors should keep this in mind! March 2006.  The greatest demand for housing at present is in the price range of between $5 and $8mil and between $12 and $20 mil in the more sought after locations. The range between $5 and $8 mil are not readily available and are immediately absorbed when offered on the market.  The rush to buy in pre-construction developments has tapered somewhat, as buyers are now unwilling to commit knowing that the construction period is averaging from 18 -24 months and the many uncertainties that can affect real estate has created a degree of hesitancy on the part of buyers. However, demand remains strong enough such that developments with attractive amenities and adequate green space offered by proven Developers are still attracting the discerning buyers.  The increase in the loan amount from the NHT is a positive move and will no doubt create additional purchasing power in the market place. Contributors to the NHT can now access loans of Three Million Dollars ($3,000,000.00) for a single person or Six Million Dollars ($6,000,000.00) for two persons. The rate of interest which does not exceed eight per cent (8%) is dependent on the earning capability of the borrower.  The Property Market trends as stated react strongly to changes in the social and financial stability as perceived by potential investors.

Valerie Levy has been a licensed Real Estate Broker since 1977 and is the President of Valerie Levy & Associates Limited.  You may view their website at www.vlarealtors.com