The Tribune

• Realtor aiming to match ‘if not better’ 2022 surge

• Set to ‘keep foot on gas’ after post-COVID boom

• ‘Inventory crunch’ hurts ability to meet demand

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian realtor yesterday voiced optimism his firm will “put up the same numbers if not better this year” following 2022’s 60 percent revenue growth, adding: “We’re on the back end of the spike.”

Tim Rodland, managing partner and broker at Better Homes and Gardens Real Estate MCR Group Bahamas, told Tribune Business the company “will do our best to continue the momentum” from 2021 and 2022 despite an “inventory crunch” that has left fewer properties available for high-end buyers.

Despite the potential supply-demand mismatch, he pledged that his team will “keep our foot on the gas” with its Exuma office “exceeding our expectations” after opening in a 2022 that proved to be a second consecutive “record-breaking year” for most Bahamian realtors following 2021’s post-COVD bounce back.

Mr Rodland told this newspaper that MCR Group’s total 60 percent year-over-year revenue growth covered all business segments including sales, rentals and appraisals. “The previous year was a record-breaking year for most people in real estate, and in 2022 we did even better, which was great,” he said.

“I can tell you this. There’s a lot of people that are saying that the market has corrected itself. I’m not sure I like that terminology because a correction to what? The way I see it is that we’re on the back end of the spike at the moment. That’s the best way for me to describe it.”

Demand for high-end Bahamian real estate among international buyers soared in 2021 and 2022 as COVID restrictions eased, both locally and around the world, and while the market may have started to cool interest in this nation remains strong according to multiple realtors.

“Doesn’t mean that we’re going to go back to pre-COVID levels?” Mr Rodland said of his “back end of the spike” analysis. “I don’t think we’re going back to that. I don’t think that’s where we are. My best terminology, and the best way to describe it, is that we’re on the back end of the spike. We’ve been pretty fortunate and will do our best to continue the momentum.

“Our strategy, and what we do, is as much dependent on the market and where we are and what our goals should be. Our strategy for 2023 will be different from 2022, and will likewise be different for 2024.” He added, though, that it is too early to predict how the Bahamian real estate market will perform for the 2023 full-year based on just the first two months.

“We’re just kind of hoping for the best. It’s still too early to determine what this year will look like, but we remain optimistic,” Mr Rodland said. “I can tell you that the activity has slowed down because of the inventory crunch. The demand is still high, but not as high as it was during 2021 and 2022. There’s definitely activity in the market and buyers looking to secure, but again we’re having an inventory crunch.”

The shortage of available properties directly relates to the frequency and pace at which high-end Bahamian real estate was acquired in COVID’s wake, reducing the remaining supply for purchasers arriving now. Mr Rodland said it was difficult to quantify the extent of the shortage in numbers, and added: “It just means that we need to build more product.

“In our business, we’re in the business of selling and promoting. It’s hard to find property for buyers. I do know that’s a struggle. It’s always good to know the demand is high. Obviously there was a big rush, and a lot of things sold. We’re keeping our foot on the gas. We’re on the back end of the spike. There’s still demand for The Bahamas. People are still coming, still looking for property.

“We are optimistic, the way things are right now, we will do as well as last year, and will push to put up the same numbers - if not better- this year.” However, Mr Rodland explained that, depending on their personal circumstances, some potential purchasers are electing to hold-off on real estate buys if they feel the correct property is not immediately available.

“If there are three properties on the market and they don’t like any of them, they may choose to wait three months for something else to come on the market that is better suited,” he explained. “There are some people that are taking that opportunity, saying: ‘We can settle for that but can also continue to wait. There’s things we can buy and make this work - x, y and z - or we can sit down and find things better suited for ourselves’.”

Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, backed Mr Rodland’s analysis, telling Tribune Business: “It’s still looking good. Not as brisk as last year, but good still. It’s still there. There were more sales a year ago, but we’re lagging with inventory. That’s it in a nutshell.”

Mr Rodland, meanwhile, said MCR Group Bahamas’ Exuma office had outperformed forecast since it opened around one year. “We’re doing extremely well, especially in Grand Isle,” he added. “We’ve been seeing a lot of demand, especially in north Exuma. It’s exceeding our expectations at this point, it’s fair to say.

“These are the prime jewels of The Bahamas. The Exuma cays are unmatched in terms of diversity. The Exuma cays are the most gorgeous places in The Bahamas, and are in high demand. It’s a different type of buyer who can afford something in the cays. We’re doing extremely well in that market.”

Mr Rodland, though, said he disagreed with those who argued that rising global interest rates - especially in the US - have little to no impact on international purchasers of Bahamian real estate, many of whom are cash buyers. While it may not directly impact the transaction, he added that such increases affect a buyer’s wealth by impacting the value of their other assets, businesses and investments, while also affecting the exchange rate for Europeans and Canadians.