This has been a continuing slow year in real estate sales, but it has been busier when compared to past three years.
There has been a definite rise in sales volume in the entry level priced residential segment, but only marginal action in the upper tier priced residential category.
Very substantial price reductions continue to come in, from all companies, in all property types. These reductions do not necessarily bring increased showings or offers. They do encourage other sellers to follow suit, in order to remain competitive in pricings. At the point of an offer, the buyer delivers a further serious price reduction, in spite of consistent price drops en route.
So, sluggish conditions & further price instability, in entry level residential options. Lack of interest in undeveloped land choices. Little interest in commercial/business opportunities. Sporadic interest in upper tier priced residential offerings, & very significant reductions at the offer point, in most cases. Still a very uncertain market, then, with periods of inaction, across the board.
It is marginally improving in that lower end priced segment, but there is no certainty that this means stronger conditions on the horizon.
Year 8 of an 8 to 10 year cycle, coming up? Implying a resurgence in sales, though not in pricings? Perhaps….
A seller needs to be patient…in our kind of discretionary marketplace, the buyer is always in control of the where & the when of any purchase.
In this kind of uncertain economic time, price reductions don’t necessarily create a desire to act, on the part of a buyer.
No one has to buy a second home or retire in any particular timeframe or purchase a recreational or a holding property. It’s always by choice, in a secondary home market. Confidence in the overall economy will generate buyer action in a discretionary region.
If price does propel action, it will be driven by such a steep price drop, so much lower than assessed or intrinsic value, that it cannot be ignored by a potentially interested buyer.
Even then, the buyer will have to be targeted towards this island, with some knowledge of the deep cuts over the past 3 to 4 years.