Purchasers, it is time for anyone who has been sitting on the fence and thinking about buying real estate, to take action and move. You will get better deals in today's market, so it's time to negotiate prices AND BUY NOW!
Vendors, you need to understand that there are less purchasers out there at the moment. Interest rates are high, cost of living is higher and the stock market is doing extremely well.
According to The Washington Times, which quoted "2007 is going to be a very hot year for foreclosures sales. RealtyTrac.com the largest US base foreclosure database, reports that while foreclosures filed in December 2006 were 9 percent less than November, the numbers were up 35 percent in December year over year. "New foreclosure filings surpassed the 100,000 level for the fifth straight month, something we've not seen since we began issuing our foreclosure market report in January 2005,"
How does this reflect in the Cayman Islands you may ask? Well we all know the saying that "when the USA sneezes, We (the Cayman Islands) catches a cold". As 70-80% of Real Estate investors in Cayman hail from the USA. Why would an investor want to come here to invest when there are good deals in his own backyard?
Nervous investors have taken there cash and put it in the Stock Market, a clear indication seeing that the DOW is at an all time high. The savvy investors will be picking up steals in the USA and waiting for the market to turn around.
If you have priced your property to realize a monster return, you might have to re-think your investment strategy. If you can sit and wait it out, then do so, but take the property off the market. It is a common question from a potential purchaser to his realtor as to how many days the property has been on the market. The longer it has been on, the lower the offers will be. If you have to sell now, then look at a smaller return, lower the price to suit today's market and sell.
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