The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

A Bahamian realtor yesterday said New Providence's housing inventory has entered a "super seller's market" with buyers bidding above asking prices within hours of properties being listed as limited supply continues to fuel intense competition for homes.

Matt Sweeting, RE/MAX Bahamas presiden, told Tribune Business he recently listed a multi-family property in a western gated community that attracted multiple offers within 23 hours of being placed on the market, with prospective buyers even attempting to identify the owner privately in hopes of submitting offers above the asking price.

"We're in what I would call a super seller's market. It's even tighter than it was before," he said. "We listed the property at market value at 10am, and by 8pm the next morning we had multiple offers. People were carrying out their own investigations to identify the owner so they could submit offers above the asking price."

Mr Sweeting said the bidding war reflects an acute shortage of available homes across New Providence, particularly in gated and relatively safe communities.

"That's how difficult it is to find properties in New Providence right now," Mr Sweeting said. "We're seeing tremendous demand across every segment of the market, whether it's single family homes, multi-family properties vacant land or condominiums."

The supply shortage, Mr Sweeting said, is creating challenges that extend well beyond finding a property. With homes frequently selling at or above their appraised values, he warned buyers are increasingly entering "negative equity" territory, where they pay more than a property's market value and must wait for appreciation before building equity.

"If you're buying a property above its market value, you're entering negative equity territory," he said. "You have to wait for the property to appreciate before it reaches its market value."

Mr Sweeting said that, even after securing a property, many buyers are delaying construction because of escalating building costs.

"Construction costs are the highest they've ever been," said Mr Sweeting. "Some buyers may have to sit on a lot for one or two years, allow some equity to build and then revisit construction."

He added that obtaining financing has also become more difficult, with mortgage approvals and closings taking significantly longer than in previous years. "We're seeing extraordinarily long delays in mortgage approvals and closings across almost every lending institution," he said.

Mr Sweeting also pointed to ongoing concerns surrounding contractor accountability, noting proposed contractor licensing legislation could help provide greater confidence for consumers, even if it cannot eliminate every dispute.

"Licensing is not a guarantee, but it would require contractors to meet professional standards and complete continuing education, which gives some indication of their professionalism and ethics," he said.

Given the range of issues affecting the housing market, Mr Sweeting said a co-ordinated response is needed from both the public and private sectors.

"There may need to be a meeting of all the stakeholders - realtors, attorneys, bankers and policymakers - to see what can be done to ease the stresses of the housing market," he said.

Mr Sweeting also argued that the current market signals a need for additional residential development to meet demand. "It's calling for developers, it's calling for policymakers and it's calling for everyone involved in housing and development to do more development because there's tremendous demand,” he added.