The acceleration of volume in transactions in the Dominican Republic market is undeniable. Inventory in the lower price points (under $200,000) has pretty much evaporated, 2 years ago experts were talking about 48 months of inventory in the under $200,000 market currently we are at a ‘balanced inventory’ level of approximately 12 months supply. ‘Deals’ in the under $500,000 are harder to come by and when they do become available, they sell in the first couple of weeks.
In the Luxury market, inventory levels are still high, mainly because of the existence of ‘sellers’ that are, what we call ‘not real sellers’. These sellers, price their property unrealistically at levels out of what the market is currently tolerating. A trend that we noticed is that a high percentage of homes over $1M that successfully sold, sold in the first 3 months of being listed. The advantage for buyers in the luxury market is that, unlike the under $500,000 market, there are many great choices out there to pick from and in many cases sellers in this segment of the market have plenty of equity to give you a great deal! We expect this market to shave off much of its inventory before the end of the year.