This market is a hard one to read. What we do know is that there are a lot of listings in Juan Dolio and all over the DR as owners are reluctant to lower their asking price. There are of course exceptions and Juan Dolio Real Estate is keeping its eye out for buying opportunities. We also know that there are a lot of buyers sitting on the sidelines – waiting for the good deals to appear. Who will blink first?.
One thing we do know is that interest rates in this country have never been better. With a continuing weak U.S. economy and the European financial crisis, it seems that any significant interest rate increases will be put off to 2011 at the earliest. What does seem to catch investor eyes is the poor stock market performance. Buying real estate is a much better and less volatile option for many investors.
My best guess is that the real estate market will remain fairly active in Santo Domingo and Santiago with its high density of populations while opportunities can be discovered with price reductions in beach communities like Samana, Las Terrenas, Punta Cana and Juan Dolio. What do you think? Are there any further market surprises yet to be factored into this market?