Believe it or not according to many top economists around the world there are signs that the world   economy may be emerging from the worst recession in five decades.   As I have always stated whatever happens to our neighbors across the pond  is always a great predictor of our future in Freeport since we are so closely tied to the US.  

The US housing slump, now in its fourth year is stabilizing according to experts.   From the local perspective our housing market is very slow as I’m sure everyone is aware. The number of real estate transactions is down almost 30% and prices for homes actually sold are down almost 15%.

That is not great news, but if you are selling your home this  does not mean that you can’t or won’t sell your house…

As we approach the end of June that means that we are half way through 2009. These past 6 months have given some of us a lot of gray hairs and taken all of us on an emotional rollercoaster ride. Many experts predict that the real estate market is close to or has reached the bottom. Unfortunately no one can tell you exactly when we reach bottom because when the market prices begin to rise you missed the bottom. There is no doubt in my mind that if you are looking for motivated sellers and deals in real estate this is the time. It’s one of those times when the aggressive people make a lot of money and the timid just look from the sidelines and become what I call a “Would of Could of Should of”.

If you are a potential home buyer, condo buyer, duplex buyers, land speculator, canal home buyer or commercial buyer get up off your seat and look around for deals...

The media continues to take us on the roller coaster of GOOD news and BAD news again as we are focused on the headlines.  The Headlines this week are about The Swine Flu which could turn into a  Pandemic and   signs of economic recovery for the US. That’s  really bad news about the flu, and good news about the economy,  but where does that put the Real Estate market in Freeport, Bahamas?

Where ever I travel in Freeport I am always asked the same question. How’s the market?  Is there a real estate market in Freeport?  Do you have GOOD News or BAD News?

My answer is there is GOOD News and BAD news it’s just a matter of perspective. ..

US President Obama stimulus package called the "American Recovery and Reinvestment Plan” will pump close to a trillion dollars in the US economy that will create 3 million US jobs in the short-term and spur economic growth in the long-term. World leaders across the globe have followed President Obama’s lead and devised their own stimulus plans to get their economies moving again. So the world leaders are finally working together to make sure that we all get back on the prosperity track if that’s possible.

If all goes well this sea of money being injected into the world may lower mortgage rates which will ease foreclosure rates and the optimism of a better economy will lift the stock market as investors will step off the side line and reinvest in the market. In the short term these measures will re-inflate the housing markets world wide.

As we all know, to a certain extent the Bahamas Real Estate market has always been affected by the US market. US President Obama is about to push through an economic stimulus plan worth close to a Trillion dollars which everyone hopes will put the US back on track as the US economy is entering its sharpest downturn since before World War II, according to many economists.

This is very important to the Bahamian market because a strong US economy is vital to our tourism economy and the health of our market in general especially the real estate market. So it appears that Hope is on the way which means that if you have been thinking about buying real estate this is a GREAT time as the market is reaching the bottom because the next cycle will mean increased prices. Don’t be a “woulda coulda shoulda” investor and make your move now...

We are already 29 days into the New Year with a new president of The United States, who has given the world hope of recovery from the economic meltdown we saw in the U.S. at the end of last year.

With the most incredible year bogged down in financial disasters, the energy crisis, the housing collapse, the stock market collapse and foreclosure catastrophe, 2008 is going down in the history books as the worst year in real estate and financial history. There certainly wasn't a shortage of news grabbing headlines. But now that is behind us and we all look to the future. Everywhere I go everyone wants to know how is the market in Freeport and what is the future of Real Estate on the island?

If you own a home or land in Grand Bahama and you who want to sell today in the middle of this world economic crisis you have a choice: You can sell in the current market at current market prices or you can wait and wait until you get “your price”. Of course, the second option assumes that buyers will wait for you but there is If you really want to sell your property today, my recommendation is that you need to forget about the real estate market of just a few years ago and face the new reality that Grand Bahama is now a true buyers' market, and you will be competing with a growing supply of motivated sellers to get buyers interested in your property.

A buyers market basically means that we have more sellers than buyers and from this excess supply of sellers, buyers have more choice and can therefore get better deals because there is greater Supply than Demand.

If you are like most people you have been glued to the TV and Internet watching the world financial crisis unfold.   There is certainly plenty of bad news out there and it’s worldwide. Usually the bleak economic picture is reserved for Freeport, but it seems that every corner of the globe is having its own financial problems.

The good news is that from a historical perspective the Stock Market drops are not as bad at Black Monday 1987 or The Great Depression and world governments having learned lessons from the past are doing their best to stabilize the world economy. The US Federal Reserve and six other major central banks from around the world slashed interest rates yesterday and Central Banks around the world are working together to free up the credit market to get us moving in the right direction which is a good sign.   Governments may not have all the answers but ...

The question that I am asked everyday on the streets of Grand Bahama is How’s the market?   With the recent Lehman Brothers Wall Street Crisis which has reverberated around the world along with our low tourist numbers on the island the Real Estate Market has definitely experienced a slowdown BUT it is far from dead no matter what you hear.   There are still many buyers looking to buy and many sellers looking to sell and that is the nature of the business.

For a thousand different reasons people WANT to or HAVE to make a change in the roof over their head and this is what makes the Real Estate Business tick in good times and in bad times. Many sellers have finally adjusted their prices and many buyers are looking for deals so when you find the RIGHT 2 parties it can be a win win for both parties even in these tough economic times...  

Unless you have been out to sea crawfishing without a radio or living in Bens Cave at The National Park you must know by now that the US is in the middle of a very serious Financial Meltdown. The U.S. Federal Reserve Board chairman Ben Bernanke and Treasury Secretary Henry Paulson have begged the US Congress for a $700-billion cheque to buy up bad mortgage debts to avert a crisis that could be as big as the Great Depression of 1929.   

That’s pretty bad news.   Our slow economy in Freeport from lack of tourism “ain’t nothing” compared to this crisis but we live in a global community and we are affected by everything that happens in the US like it or not.  We are a tourist based economy and if people in the US and around the world are worried about their finances they are not going to travel and certainly will be extremely cautious when it comes to making a real estate investment abroad.   We need foreigners and foreign investment to stimulate our economy and that is a fact... 

It is said that when the US sneezes Grand Bahama gets a cold.   It is certainly true that on this small island only 68 miles from West Palm Beach we are greatly affected by our big neighbor to the west. When it comes to property prices the question is will our property prices be affected by all the bad news we hear on the nightly news about Real Estate or has Grand Bahama received its flu shot this year?

In case you don’t watch the US news you might not know that there is a mortgage crisis in the US.   Over the last few years banks have been lending money to bad credit risks or making sub prime loans.   Would you go into an Assue with someone who broke the last Assue they were involved in?    That person would be considered a bad risk and you would most likely not be sure that they would follow up on their commitment.   Well the US banks decided to lend lots of money to bad risks and guess what?

It is a well-known fact that location is one of the most impor­tant elements in the value of a property in Grand Bahama and anywhere in the world. Let's take that one step further.  A good investment buy would be a sound property in an area that will increase in value in the future. Buying into an area that is strong­ly on the comeback is one way of having a successful real estate investment...