Guam Real Estate: Is 2022 The Year To Invest?
Real estate has been a solid investment for decades. It's historically been a good source of cash to finance your retirement, supplement your income, or fund whatever financial goal you have set for yourself. In fact, keeping plenty of liquid cash on hand is one strategy to use when investing in real estate.
Now, think about the possibility of investing in real estate in one of the most beautiful areas of the United States: Guam. Guam is the largest island in Micronesia. It's located on the far side of the international date line and about three-quarters of the way from Hawaii to Indonesia. The isolation makes it one of the more unique places in the world, which means it could be the perfect place for an investment property.
So the question is: Is 2022 the right time to invest in real estate in Guam? Let's take a closer look at all that this exotic island has to offer.
What are real estate prices like in Guam?
The average home for sale in Guam in 2021 rose to roughly $415,000, which is about a 12 percent increase year-over-year. The COVID-19 pandemic obviously did not hinder the sales of real estate on the island.
So what will the market look like this year? Well, experts from Modern Realty Guam are predicting that real estate market shows no signs of slowing down. In fact, with a steady rise in population, it's very possible that the market is going to continue booming. A larger pool of potential residents means that home values won't be decreasing any time soon. Prices have risen significantly over the last year, and you can expect them to remain steady, if not rise even further.
What is the housing supply like in Guam in 2022?
All over the country, the current trend in real estate is a shortage of inventory. Guam's real estate market is no different. A shortage of housing creates an incredibly competitive market as buyers fight for bids on desirable property. The end result is a bidding war that drives prices up.
Over the next couple of years, it's estimated that housing inventory may increase slightly, with plenty of new construction homes being developed, but the swing in mortgage and interest rates may affect the market yet again. Right now, rates are at an all-time low. This makes it easier for first-time homebuyers to break into the market.
In the coming year, banks and lenders may alter their rates, making it a little more difficult for new buyers to manage the loan they would need to meet the competitive prices in the current market. So if you have the funds or can get a great deal on interest rates, you may want to jump into the Guam real estate market right away before things start to shift too much.
So what does that mean for potential investors?
One of the biggest investment opportunities in real estate is a multi-family property. The island has a large population that is constantly growing, and this makes it an ideal place to own a multi-unit building. As you might imagine, land is not abundant on the island, making these shared properties an increasingly growing trend.
There are plenty of investment options when it comes to real estate in Guam. Just about every type of housing unit is available for purchase: single-family homes, condos, and apartments. With real estate prices expected to remain high, it wouldn't be a surprise if we see more people opt for co-ops in an effort to retain their investments.
There are plenty of developments happening on the island, so there's no shortage of opportunities for investors. If you're interested in learning more about your investment options, schedule some time to sit down with a local real estate agent. He or she can go over all that the island has to offer and help you find an option that fits your needs.
The bottom line:
Investing in real estate in Guam is a solid decision–or at least that's what the numbers say. The market has seen some price growth, but prices are still relatively affordable compared to other markets across the country. It's possible that the market could see more of an appreciation in 2022. When it comes to investing in real estate on Guam, now is definitely a good time to pull the trigger. So if you're looking for some help getting started with your own home or investment property in Guam, get a move on!