What’s the problem with Guams real-market prices?
The real estate market is a mess.
Guam’s real-value per square foot has been hovering around $400, but this month it is trading at around $350, according to data from Zillow.
The current market rate of return for Guams land is around 10%, compared to about 15% for real estate in the US, according a report from the Land Price Index in 2016.
The market for Guam land is also very volatile, with the last 10 months having witnessed a major spike in the value of land in the capital, according the report.
According to the Land Value Index, the average real-valued land in Guam is worth $2.3 million, compared to the average of $2 million in the state of California.
Guams real estate has also seen a massive jump in the price of condominiums and apartments, with prices increasing from around $500,000 in 2012 to $700,000 today.
However, it seems the market has become more volatile over the past few years.
In 2014, Guams average real estate value was $1.6 million, according TOI data, which is now worth $1 million.
In 2016, the real estate is now valued at $1 billion, which means the real-price of land has grown from $1 in 2012.
The land market in Guams is now in a severe predicament.
The Land Value index, the largest real-trending indicator for real-property prices in the country, has recorded a significant dip in 2017.
The index has dropped from its all-time high of $1,000,000 a year ago.
The real-index has also dropped from $2,000 years ago, in 2016, to $1 at the moment.
This is a worrying sign for Guamians real-investment prospects.
In fact, the latest Zillows report predicts the real value of Guam property will decrease by 40% in the next decade.
Real-estate analyst M.A. Patel of H&R Block said that Guam has seen a sharp decline in real-income over the last decade, which has made the property market even more volatile.
The market has been a real mess in Guampas real-exchange market, and we have a lot of questions, Patel said.
He also said that the government needs to step in.
“The government should provide a mechanism to control property prices.
It needs to be very clear that this will be the only way to preserve the value that the property will bring to the community,” Patel said, adding that he is optimistic that the Guam government will step in and help stabilize the market.
The government needs a mechanism where property prices are regulated so that the value and the affordability of real-properties can be maintained, Patel added.
The real-real estate market has not recovered from the past decade-plus of volatility in the market, he added.
While the market is volatile, it is not yet the same as the market in the early years of the global financial crisis.
There were more than 1.5 million properties in Guamy in 2015, but the real number of properties in the island was only 6,000.