When is the best time to buy real estate?
When the time comes to buy a property in Panama, the best times to do so are in late summer, early fall and spring, according to a new study by the Fifth Estate, a real estate consultancy.
The study, based on data from the Panama Real Estate Association (PANA), looked at how buyers and sellers in the country compare on the basis of factors such as the number of available properties, average market prices and market sentiment, among other indicators.
According to the report, the optimal time to purchase a property is when the market is “at its strongest and there are strong prospects for future growth”, while it is “the best time” to sell in the “mid-to-late-summer” and “spring” seasons.
The best times for buying a property were found in the first quarter of 2018, which is a time of heightened interest and speculation in real estate markets.
It is when prices have been relatively low, interest in real property is high and the market has been buoyant, according the report.
“While there is a growing number of new properties, the market can only hold up so much,” the report states.
“For example, in the period from January to March 2018, there was an increase in the number properties purchased, but in the same period from March to May 2018, the number declined due to a significant increase in vacancies,” it says.
In fact, real estate agents and real estate experts said that, even though the number may have decreased in 2018, they still expect the market to remain strong.
“In 2019, there is still a great opportunity for new buyers to buy properties with a view to moving into the property and moving into a stable income,” said PANA managing director Jose Antonio Salinas.
“The average cost per square metre has risen, which should encourage the construction of new buildings and make the market attractive for developers.
This can only help in creating more new jobs, as well as in attracting new tenants.”
But the report says there are some areas where there is little to no demand, and where buyers need to be wary.
The most important area, the report said, is in the mid-to late-sumter and spring seasons.
“It is crucial that buyers understand that, in this time, they need to prepare for possible adverse events,” the authors of the report write.
“This is not to say that the market does not have upside potential, but there are still risks associated with the timing of purchases and the properties that can have an impact on the market.”
For the most part, they say, buyers and developers should stay vigilant, considering that they are faced with “an unpredictable real estate market”.
“As a buyer, you should always consider the pros and cons of each deal, and act accordingly,” they conclude.
“Be sure to take into account the potential risk of any property before making an offer.”