The Puerto Rico real estate market has continued to show resilience in the face of the pandemic, with both new and used housing units seeing a steady rise in sales and total sales amount over the past two years. The data from January 2021 to February 2023 shows a consistent trend of growth, even during times of economic uncertainty.
From January 2021 to February 2023, a total of 16,240 housing units were sold in Puerto Rico, with a total sales amount of $2.7 billion. In the first month of 2021, 53 new housing units were sold for a total sales amount of $14,088,353, while 867 used housing units were sold for a total sales amount of $145,406,945, resulting in a total of 920 housing units sold for a total sales amount of $159,495,298. By February 2023, the total number of housing units sold increased to 768, with a total sales amount of $132,851,294.
Interestingly, the data reveals that the number of new housing units sold has been consistently lower than the number of used housing units sold throughout the period. However, the total sales amount for new housing units has been consistently higher than that of used housing units. This suggests that although fewer new housing units were sold, they were sold at higher prices than used units.
The steady rise in sales and total sales amount of housing units in Puerto Rico can be attributed to several factors. Firstly, low interest, during the period of 2020 and 2021, rates have made mortgages more affordable, making it easier for people to buy a home. Secondly, the Puerto Rican government has implemented policies aimed at boosting the real estate market, such as tax incentives for investors and developers.
Despite showing positive trends, the real estate market in Puerto Rico still faces significant obstacles that must be addressed. Chief among these is the scarcity of available housing inventory, which has resulted in bidding wars and heightened competition among buyers. Additionally, the exorbitant cost of construction materials has contributed to the increased prices of new housing units. Furthermore, rising interest rates are also a significant challenge that the market must contend with. Recent comparisons between January and February 2023 and the same period in previous years have revealed a significant decline in both the number of housing units and sales. Specifically, there has been a 28.2% decrease in units and a 31.7% decrease in sales when comparing January and February 2023 with the same period in 2022.
In conclusion, the Puerto Rican real estate market has demonstrated remarkable resilience amidst economic uncertainties caused by the pandemic. The steady rise in sales and total sales amount of housing units in Puerto Rico over the past two years can be attributed to factors such as low-interest rates and government policies aimed at boosting the real estate market. However, challenges such as the shortage of housing inventory, high cost of construction materials, and the increase in interest rates still need to be addressed. Despite these challenges, the Puerto Rican real estate market remains an attractive investment option for investors and homebuyers, and it will be interesting to see how the market continues to evolve in the coming years.