Overall, used housing prices in 2022 were higher than 2023 in five out of twelve months. However, it’s important to consider that the difference in price between the two years is relatively small for most months.
Here are some additional observations:
- May 2022 vs. May 2023: This is the month with the most significant difference in price between the two years. Existing housing prices in May 2023 were $2,790 higher than May 2022.
- December 2022 vs. December 2023: This is the only month where the price in 2023 ($184,362) was higher than 2022 ($183,286).
Possible Reasons for the Fluctuations
There could be several reasons why used housing prices fluctuated throughout this period. Here are a few possibilities:
- Seasonal Trends: The housing market often experiences seasonal fluctuations in prices.
- Inventory Levels: Fluctuations in the availability of used housing could also impact prices.
- Economic Conditions: Broader economic factors, like interest rates, can affect housing affordability and buyer demand.
While used housing prices were generally higher in 2022 for most months, the overall difference seems relatively small. Here’s how economic factors might be influencing this trend:
- Post-Pandemic Recovery: The recovering Puerto Rican economy could be leading to increased demand for housing, putting upward pressure on prices in both new and used markets.
- Tourism Activity: Puerto Rico’s tourism sector is a significant contributor to the economy. Fluctuations in tourist arrivals throughout 2022 and 2023 could impact demand for short-term rentals, potentially affecting used housing prices in areas popular with tourists.
- Mortgage Interest Rates: Interest rates started rising in 2023, which could impact affordability for some buyers and potentially cool the market somewhat. However, the impact might be more pronounced on new housing prices compared to used ones.
