The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent Bahamian realtor is urging vendors not to over-price their properties given that data shows the average selling price can be up to 40-50 percent below the initial listing.

Mario Carey, pictured, founder of Better Homes and Gardens Real Estate MCR Bahamas Group, told Tribune Business that his analysis of data from the industry’s Multiple Listings System (MLS) had uncovered “trends that we need to pay attention to going into 2020”.

Going back over a five-year period, he said some $1.2bn worth of inventory listed on the MLS - equivalent to ten percent of the total $12bn listed over that period - had sold. The average listing and selling prices stood at $700,000 and $400,000, respectively, with the average number of days on the market standing at 270 (around nine months).

“What I noticed is about ten percent of inventory on the MLS sells annually; there was $1.2bn over a five-year period in sales on the MLS,” Mr Carey told Tribune Business. “Over that five-year period, $1.2bn out of $12bn sold.

“The average listing price was $700,000, the average sales price was $400,000, and the average days on the market was 270. There are trends there that we need to pay attention to going into 2020. I still think it’s a buyer’s market, and the mentality has been to list high, get offers in and negotiate.

“With the data available, why not list the property and sell the property? I’m not big on taking a listing over a period of time. I’ve lost business because of that. I’m not one to sit on the summit for three years,” he continued.

“It’s a tricky business. I noticed the trends: Ten percent of properties being listed are being sold, the average listing is 270 days, and the average price is 40 percent below the asking price on average over a five-year period.”

While acknowledging that the MLS does not include every property listing in The Bahamas, Mr Carey argued that the volume of inventory it features is still large enough to be statistically significant and help to gauge trends.

His data suggests that more than $200m worth of MLS listings are sold annually, a figure that does not include private listings, new inventory constructed by developers and a whole host of other realtor listings. Besides the work created for realtors, contractors, furniture and materials suppliers and attorneys, Mr Carey also pointed to the VAT and other taxes generated for the Public Treasury.

He also urged the Government to “empower” Bahamian ownership in the tourism industry by creating a taxation level playing field for Airbnb and other vacation rental owners through giving them the same tax breaks and incentives as the major resorts.

“I’ve always felt that as Bahamians we should be empowered to get into the Airbnb game,” Mr Carey told Tribune Business. “We should be given real property tax breaks, VAT breaks.

“Every Bahamian should be encouraged to hold five properties. It doesn’t have to be as individuals; it could be done through partnerships. It should be the same incentives given to the hotels. Why not empower us in this tourism industry and give us a piece of that?”

Mr Carey added that the Bahamian real estate market appeared poised for a good 2020 having shrugged off any fall-out from Hurricane Dorian, and client phone and messaged inquiries starting to pick-up as normal as the industry’s typically busy season kicked-off on Boxing Day.

“I don’t think you ever get a real estate agent to be negative,” he told Tribune Business. “I think we’re going to recover from the slowdown post-Dorian. Typically that time of year slows down anyway going into the summer. Did we lose about 20 percent? Maybe, but in the slow season.

“Our season traditionally starts on December 26, so the phone is now ringing and there are a lot of e-mails. I got inquiries for a property in the Family Islands. They want to buy for $3m and rent it out for Airbnb, so they’ll be looking for property management.

“The hurricane slowed things down a bit, but luckily the real estate market is not focused on BPL. That whole thing is such a mess. It’s bad news,” Mr Carey added. “I think we’re in a good position. I think the market is going to do well.

“There’s affordable money out there. We’re still an attractive destination and the Ministry of Tourism is bringing bodies here. The Bahamas is now a global name in a concerning way, but the more we promote The Bahamas is open for business the better it is.

“We’re looking forward to 2020. Affordable money, affordable inventory, and the luxury market continues to do well. My feeling is we’re going to have a good year. There’s a lot of money out there, a lot of wealth. The Bahamas is a well-known second home market and we have to capitalise on it.”

Mr Carey added that developments such as Hurricane Hole and GoldWynn were bringing new high-end inventory to market, together with expansions at the likes of Palm Cay and new projects at Cable Beach and Love Beach.