Homebuyer interest in Puerto Rico properties is on the upswing as home prices sink to an eight-year low, according to an analysis by Point2 Homes.
Point2 Homes identified the trend after evaluating the impact of Hurricane Maria on the island’s real estate market. The analysis compared asking prices for Puerto Rico homes sold before and after the hurricane. Additionally, it looked at Google and Point2 Homes traffic patterns to consider current demand.
The study revealed that Puerto Rico home prices were already on a downward trend, with Hurricane Maria adding more pressure. Property values declined 15% since the hurricane struck to sink to almost half of what they were worth after the recession had taken effect eight years ago.
Along with this decline in prices is an increase in interest in real estate on the island. Point2 Homes found that online searches for homes for sale on the island peaked during the hurricane’s impact. Now, potential homebuyers in the US are planning to buy low-priced houses on the island within a year.
Puerto Rico’s home prices reflect the economic recession it has been going through over the past 10 years as well as the steady decline since the housing bubble burst in 2008. The analysis looked at data on properties listed on Point2 Homes and found that the median home selling price on the island decreased by 48% from $224,000 in 2010 to $116,750 this year.
The arrival of the hurricane intensified this trend. Puerto Rico properties had prices of around $136,500 right before the hurricane his in September, or 15% higher than they currently are, the analysis found.
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