Lesser number of properties were sold and rented in 2020 compared to 2019. This is understandable due to stay-at-home orders and government being closed or operating in very limited capacity.
Prices for single family homes increased while prices for condominiums decreased. Average rental prices stayed about the same and above $2,000.00. Take note, Military rental prices start at $2200.00 for single members and $2450.00 for members with dependents. It is safe to conclude that the rental market in 2020 was driven mainly by Military rentals.
Days on market for home sales took longer. Again, the pandemic, affected this greatly.
Most number of homes sold were in the $250K-$300K price range. The $450-$500K where most of our VA Buyers at has the Absorption Rate of 22%.
Overall Absorption Rate for all price ranges is 117% which indicate that Guam has strong Seller’s Market.
For the villages, we see that the highest absorption rates are in Talofofo and Ordot-Chalan Pago and that there is no inventory at all at end of the 2020 in the Villages of Barrigada and Santa Rita where the demand is also high.
Overall Absorption Rate in these 10 most popular villages on Guam, because of their close proximity of the bases, is 35%. Still consistent with Guam being a Seller’s Market at this time! For more information about absorption rates, read this article.
There are more homes that sold than what is available for sale. Additionally, whatever inventory is available very quickly goes under contract.
When looking at Days On The Market, one has to consider that its takes 60-90 days from the time the Buyer’s purchase contract is accepted by the Seller to Closing of Escrow.
When demand exceed supply, Seller’s can increase their price because so many Buyers are looking for homes.
If you are thinking about selling, NOW is a good time to sell while the interest are at the lowest, in a very long time. More and more qualified Buyers are coming into the market.
And you can leverage this strong Sellers Market even more by using the copyrighted 72SOLD Home Selling System exclusive to Living On Guam Realty.