Buyer’s vs Seller’s Market 2021 Outlook

08 January 2021

Buyer’s vs Seller’s Market 2021 Outlook

Now that 2020 has come to a close, the effects of this unexpected pandemic can be seen across various industries, some, such as tourism, facing major decline and some, such as digital industries,  seeing major growth. The Real Estate Industry has seen many changes across the world and in Jamaica. As 2020 neared an end, Jamaica’s real estate market seemed to resemble more normalcy than the unpredictability at the start of the year. While 2021 may see more consistency than 2020, buyers and sellers within the industry should still practice caution as job and cash flow security have proven to be fleeting during this pandemic. 

The industry has seen overall changes taking place such as the higher use of technology when it comes to viewings, communicating with agents and final transactions, but for 2021, buyers and sellers can pay attention to the following within their markets in Jamaica.

Sellers: 

Sellers have already invested in properties and for whatever reason want to gain a profit from transferring ownership to someone else. The real estate market in Jamaica shows a higher demand for housing than housing actually available. This is a positive for sellers within the market. This demand allows them the freedom to be more competitive with their prices and with the offers they accept. 

With the COVID-19 pandemic still at large, many people are searching for bigger home spaces and even homes in different cities and communities. With work from home orders in place for some industries, people are interested and able to work anywhere with good internet connectivity. This leaves seller’s in other parishes such as St. James and St. Ann with opportunities to house persons working from home and interested in moving out of urban areas such as Kingston. It also serves as an opportunity to market to people outside of the island looking to find a place to settle in other countries.

Buyers:

On the other hand, there are some benefits for buyers in the market going into 2021. 

While COVID-19 restrictions initially caused delays in delivery of materials, construction is still active in Jamaica throughout 2020 and going into 2021. Therefore, these new properties will be available for buyers if they have the resources. Many of these properties are being sold before they are completed so buyers have to be quick and look out for new places to invest; a real estate agent could be an asset in finding these properties to invest in. 

While prices have not necessarily fallen in real estate properties due to the pandemic, there is a slowdown of price appreciation. Because of COVID-19 many financial institutions have lower interest rates being offered on their loans. Buyers should take advantage of these financial opportunities while they last and use them to their assistance in making investments such as these.

Ultimately, if you are interested in buying and selling in the real estate market in 2021, you should keep abreast with the trends as the population moves to adjust to the new normal of the pandemic and as industries change and find innovative ways to maintain themselves and grow.