LET'S TALK REAL ESTATE

JAMES SARLES

Can you believe that it is already November 13 which means that Christmas is only 43 days away and 2009 is only 49 days away. Where did this year go? At this time of year I usually like to look back at the state of the real estate market and see how world events and the economy have influenced our real estate market on Grand Bahama Island.

What a roller coaster ride we have had this year with the world economic meltdown leading to a potential global recession, tourist numbers way down in the Bahamas, Royal Oasis still closed, a two year legal battle over the Grand Bahama Port Authority ownership still going on, huge growing unemployment in the U.S. and in the Bahamas, big multi-million dollar Bahama projects stalled and the list goes on and on.

The PM in his nationally televised address has warned people to live within their means to help get through these tough times. If you are a pessimist and think the glass is half full you probably think that everything will continue to get worse and you probably think that there is no real estate market in the Bahamas and especially on Grand Bahama. If you keep watching the gloom and doom on TV this makes you feel even lower and there does not seem to be any good news anywhere.

I agree these are very challenging times and it is easy to think that things will not get better. But have heart and faith because this is just a down cycle and we may be getting close to the bottom. History has shown that everything is cyclical and ... as they say when you hit bottom there is only one way to go and that is not down. So what is the other prospective from those that believe that the glass is half full.

Well for one, the U.S. has a new President and a new USA TODAY/Gallop Poll says that Americans have soaring hopes for the incoming Obama administration. In fact 65 percent of Americans believe that the USA will be better off four years from now. That is good news because that means that there is hope for our neighbours just 68 miles to the west. And if there is hope for America there is hope for Europe and this contagious thing called hope can spread across the globe.

This hope translates to consumer confidence and consumer confidence in the USA and the world translates into abundance for our little Grand Bahama. When there is confidence foreigners will travel and spend money in our economy and invest in our beautiful Bahamas.

The economic trickle down will affect the cab driver, the straw vendor, the business owner and the real estate market. From a historical perspective the economic meltdown resulting in huge Stock Market drops are not as bad at Black Monday 1987 or The Great Depression. World governments having learned lessons from the past are doing their best to stabilize the world economy. It will be a tough road ahead but according to many experts we are on our way to recovery.

Unfortunately, there is uncertainty and fear in the market as these reces-sion/recovery cycles do take their time and people are worried about their jobs, their retirement accounts, their investments and their future. I know everyone wants to know what does all this news mean to our Freeport Property Market.

Well as I have always said if you own a home it is still a great investment and you should be comfortable knowing that historically even with the ups and downs in the economy Real Estate has always over time proven to be the BEST investment you can make. If you are trying to sell your home today you must be realistic with the pricing if you want to sell.

It is a very good time for motivated sellers and aggressive buyers because both parties want to make a deal. My job as a Real Estate Broker is to act as a middle man and bring these buyers and sellers together. Even though the market is slower than it's been in a while, we have been helping buyers and sellers make deals over the last few weeks because real buyers and real sellers who are willing to make a deal can.

If you absolutely must sell in this market, as many of you must do for many different reasons, then you have to be prepared to accept less for your property as it is clearly a buyer's market and buyers want great deals. If you are not willing to reduce your prices then you should take your home off the market so you don't waste your time and end up disappointed. So believe it or not this could be the right time for you to buy or sell or buy and sell if you are willing to make a deal.

Flexibility is the key and when a real buyer and a real seller meet, both parties can win and accomplish their objectives. Our local banks are willing to lend money and if you are in a financial position to buy this is a great time because prices are going to rise as the hope sets in and the world recovers from this slump.

If you have property and want to wait, sit back and relax and watch your property appreciate. If you want to sell, get going and contact your real estate broker today and let them know you are ready! If the time is right for you don't be a WOULDA COULDA SHOULDA buyer or seller but be a savvy investor or satisfied seller. Now may be the time for you. Good Luck, Have Hope and we will Talk Real Estate Next week.