Guam – Captian’s Real Estate reports the medium housing price on island has plummeted by 25% in the third quarter of 2011. That is the sharpest drop since the global financial crisis struck in the first quarter of 2009.
Prices have dropped despite an over all 10% year-to-date increase in sales volume, according to the latest Real Estate Update from Captain.
Captain writes that “economic realities and uncertainty over the military build-up” have negatively impacted market activity during the 3rd quarter of 2011.
The report also notes an increase in foreign investment highlighted by the closing on the sale of the Sherwood Hotel and the sale of an 11 acre beachfront site along Tumon Bay.
CLARIFICATION from Captain Real Estate:
Our recent newsletter included third quarter 2011 foreclosure-related sale prices at Talo Verde, Guam’s premier residential subdivision. Some readers assumed that these prices reflected open market sales, which they did not. Department of Land Management records reflect prior 2011 Talo Verde sales at prices from $600,000 to $850,000, and prior year sales from $670,000 to $876,000. We apologize if any of our readers were confused by our reported third quarter sales activity at Talo Verde.
Captain Realty Advisors