Real estate market forecast to rebound this year

A forecast has been issued for the local real estate market to make some recovery this year.

After a near two year slump in activity, realtors expect the market to turn around during the second half of 2011.

They point tom among other things, increased National Housing Trust (NHT) benefits announced last year which should influence more purchases. 

According to Edwin Wint, Immediate Past President of the Realtors Association of Jamaica, the gradual improvement in the economy will also lead to more persons buying properties.

"The economy in general, as long as it’s able to hold based on the projections that have been made, the market should start showing signs (of recovering). There are some segments in the market that are still appreciating such as the commercial real estate market which is doing ok and in some location, appreciating in value," Mr. Wint told RJR's Financial Report.

The former Realtors Association boss added that the June to December period will be a crucial one for the market.

"The initiatives by the Government and especially the NHT, its interest rates and threshold for borrowing, have been positive. The lowering of the stamp duty and transfer tax (and with) a number of factors converging later this year, we’re anticipating that the market will turn around because it is bottoming out, stabilizing and the normal cycle is for it to level off and then start to show an optic. We expect this in the last two quarters of this year all things being equal," Mr. Wint said.