The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Real estate industry data has revealed that Bahamian property sales volumes crashed by “a shocking” 92 percent year-over-year at the height of the COVID-19 pandemic.

Timothy Smith, of Better Homes and Gardens Real Estate MCR Group Bahamas, told Tribune Business that his analysis of data from the sector’s Multiple Listings System (MLS) showed a “significant decline” for the 2020 second quarter and half-year as the sector and wider economy were placed into a near-total lockdown.

For the April-June period, Mr Smith said his research showed that total real estate sales by value fell by 75 percent compared to the same period in 2019, while the volume (number) of transactions dropped by 92 percent.

Total transactions, as measured through sales and rentals listed on the MLS, dropped by 72 percent, Mr Smith added, with rentals down some 46 percent. His data indicated that COVID-19’s effects were also starting to be felt during the 2020 first quarter, with the total combined dollar value of sales down 44 percent and the number of transactions off by 48 percent year-over-year.

Rental deals helped partially cushion some of the blow for the January-March 2020 period, with sales and rentals combined just off by 15 percent compared to the 2019 first quarter.

Combining the two quarters for the half-year to June, Mr Smith said the total value of combined real estate sales involving properties listed on the MLS system was down by 58 percent compared to 2019 levels, while sales volumes had plunged by 68 percent. The total number of transactions, which includes sales and rentals, was some 42 percent lower in the first six months of 2020.

Mr Smith did not disclose gross figures, just percentages, but the latter gives an insight into the extent of the COVID-19 blow suffered by one of The Bahamas’ major industries. And, while the MLS typically captures between 40-60 percent of all listed properties, the sample size is still thought strong enough to provide a basis for determining what is happening in the overall market.

“A lot of that reduction in dollar amount, it all comes down to foreign buyers being unable to travel,” Mr Smith told Tribune Business. “Canadian buyers, if they go back, have to quarantine for 14 days. It’s causing a lot of people to stop travelling.

“It’s not common for people to buy a property without seeing it. We’re pushing virtual sales but, at the end of the day, a lot of people are not going to pull the trigger without seeing it. It’s very rare that someone pulls the trigger on a property without seeing it. The second quarter numbers are very shocking.”

Shocking, but probably not surprising given the extent of the initial COVID-19 lockdown and restrictions that have been imposed on Bahamian realtors when it comes to the physical viewing of properties with clients. While many realtors have subsequently informed Tribune Business they are busy dealing with significant interest and demand, much of this has yet to translate into actual sales.

“I think the demand is still there and the interest,” Mr Smith added. “It’s just that people cannot get into the country and are not travelling. People have the interest; it’s just a matter of getting them into the country.

“A lot of people fear getting stuck down here. I had clients flying in from New York last week Sunday, and they had to cut their trip short and leave on Wednesday [after the Government initially banned all commercial air transport between The Bahamas and US].”

Mr Smith said some persons were making offers to purchase Bahamian real estate conditional on being able to physically come and see the property at a later date, once COVID-19 and the Government’s emergency powers have both eased. He added that such practices were not established as trends yet.

“I have no doubt it will come back,” the Better Homes and Gardens Real Estate realtor said of the Bahamian real estate market. “The Bahamas, in terms of real estate, has a product that cannot be matched in other places. It’s always going to be in high demand. Our product is a unique product that a lot of people love and want to have.”