Changing market has developers uneasy... even in paradise!

     After more than 11 years living full time and selling real estate here on Roatan, I had come to believe that our "emerging market" was nearly bullet proof.  Between Hurricane Mitch in 1998, to 911 in New York, to rising interest rates and higher fuel prices, Roatan's property prices continued to rise seemingly unaffected by the outside world around us.  On average, our prices are about a third of comparable islands around the Caribbean.  What costs you more than $800k in the Cayman Islands, will most likely run around $250-300k here in the Bay Islands.  Similar pricing differences abound using St. Thomas, Aruba, Turk & Caicos, St. Johns as comparables.  Roatan is cheaper.  Roatan is "just" being discovered.  Roatan has a long way to go (price wise) to catch up with the rest of the Caribbean--all true.

     What with the global economies in the crapper, even the hottest markets are showing signs of slow down.  My brother, a real estate guru on Maui, says sales have slowed to a stand still on resort properties and there seems no signs of change in the near future.  Here on Roatan, reported sales are down some 60% from last year.  Developments like Parrot Tree Plantation, Infinity Bay, Keyhole Bay and Pineapple Villas have slowed construction to a stand still.  Even though this is rainy season, it is also "tourist" high season.  But this year, there are less and less buyers for 2nd home or investment properties.  Developers are tightening their belts, laying off construction workers and diligently working to sell off the product that is already completed.  Some are offering excellent buying terms.... others are offering huge cash discounts.... and still others are "pre-selling" upcoming Phases well ahead of schedules.  Banks are not lending here in Honduras either.... just like the USA.

     What does all this mean to the investor still able to grab his piece of paradise?  GREAT DEALS!!  If you have the bucks... NOW is a good time to consider offers on Roatan real estate.  I'm not convinced our market will stay slower for very long though.... hotels, golf courses, shopping malls and commercial ventures are still full steam ahead!  Come on down and take advantage of our residential housing lull.... there's never been a better time to buy on Roatan!