Statistics round up
I thought it might be useful this month to start with a comparison of figures over the last five years, to indicate how the trend is definitely finally on the up. Back in the heyday of 2007 that year ended on a high note with 1,898 active listings on CIREBA’s books and the total number of properties sold as at the end of the year equalling 686, at a total volume of US$387,855,399. Although the number of active listings continued to stay above the 1898 figure for the next three years (2009 – 2010), the number of properties sold and the volume in terms of US dollars dropped each year, to a low point at the end of 2010 with just 431 properties sold that year at a volume of US$222,381,422. Figures for the end of 2011 were far more promising however, with 2,132 active listings, 467 properties sold at a healthy volume of US$323,422,258.
And by the way, readers should note that CIREBA’s statistics may not always match exactly to the Cayman Islands Governments as the two are not necessarily always in line, with Government usually trailing CIREBA’s. One of the reasons for this is that CIREBA addresses the numbers of pre-construction developments retroactively; whereas the Government’s figures only show these transactions upon completion.
Look out for a more detailed breakdown of all the latest statistics and comparison figures next month.
Don’t forget to visit www.dreamfinders.com for a comprehensive overview of some of the best properties currently on the market here in the Cayman Islands.
US perspective
In the United States, where house prices have seen deep depression, hope is on the horizon, according to a report on HousingWire. In the report the ratings company Fitch said the foundation was in place for “mild” recovery for the US housing sector, though the economy continued to temper a revival.
In a recently published report, Fitch said it expected existing home sales to grow 3 per cent for 2012, with single-family housing starts and new home sales up 5 per cent and 5.5 per cent, respectively.
Fitch’s report followed another by the government-sponsored Fannie Mae. Economists there predicted a 3.5 per cent increase in total home sales for 2012. However Fitch still had words of caution, stating that the economy itself continued to drag on the market. Home prices could lag over at least the next few quarters with employment and financial markets unstable and declines in personal income.
Much to be done
It’s hard to believe that we are now at the end of the first month of 2012 already, but so much has been achieved in this short space of time that I’m excited about the prospects for these islands for the rest of year ahead.
All indications are that the market is seeing a good deal more activity, with more people expressing interest in the real estate we have to offer and even some of the real high-enders looking once again to participate.
Local stimulus
Two new development projects promoted by Government last year as a much-needed stimulus to the economy have finally made promising steps forward, with the location of the Cayman Enterprise City Special Economic Zone finally having been unveiled as setting up shop in Savannah. This will mean development to an area long on potential but short on infrastructure. As a result, extensive thought needs to be given to improving access to the new development via better roads, as the days of relying on a single road for access out East will soon be long gone.
The announcement that the new Shetty hospital will also be out East, at Frank Sound, will also require investment in infrastructure to and from that location, to an even greater extent.
The hubbub of activity from the development of supporting businesses at both locations means prices in the area will adjust to reflect this boom in activity. Improving the roads and thereby opening up the areas themselves will only serve to support the increased activity. As access opens up in the remoter areas of Grand Cayman so does the investment possibilities for everyone.
If you have a comment or query or would like an opinion, please contact me at [email protected]
If you have a comment or query or would like an opinion, please contact me at [email protected]
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