In recent years, real-estate investments were seen as a sure thing, but with the economic uncertainty that has plagued Puerto Rico in recent weeks, some anticipated a swift blow to the real-estate market on the island. Although things certainly aren’t as they were before, reports on the negative state of the market are greatly exaggerated, according to leading Realtors.

For instance, the two biggest realty companies on the island, Coldwell Banker and TIRI, reported healthy sales for April and early May. “What has happened is that property prices have settled into a more realistic frame these past few months, in contrast to the highly speculative market of some years before,” explained Mercia Sobin, president of Coldwell Banker / Isla del Coquí Inc.

Although some pundits had predicted the devaluation of some properties due to the owners’ inability to sell their houses, Sobin attributes this perception to unreal expectations in the face of changing market conditions. “Speculation is dead. Those who expect to get maximum profits from reselling a property should begin to realize the market isn’t that way anymore,” she added.

According to Gisela Castro, president of Trans Indies Realty & Investment Corp. (TIRI), the rate in housing value increase is currently between 5% and 7%, in marked contrast to two years ago, when houses increased in value from 15% to 20% in a single year, with some properties even increasing 40% in value. “It was basically a seller’s market, and there comes a point where the prices are so high it affects the market. Now the market has slowed and it has turned into a buyer’s market. In a way, this has helped stabilize the market, because prices were increasing way too rapidly in recent years,” Castro explained.

Today, properties are selling at their appraised value or even a little bit below it, said Sobin, except in certain cases where the property is on prime real estate, which tends to increase in value faster. “In the first 10 days of May, we’ve sold 12 houses (in the Guaynabo office); if you take into account a transaction a day is the average, we’re making pretty good progress,” stated Julian R. Rivera, vice president of Coldwell Banker.

Although both companies reported healthy sales in properties under $300,000, the selling of properties of more than $500,000 is another matter entirely. “Properties of more than half a million dollars are selling very slowly, usually taking up to six months to be sold, compared with two years ago when they were sold within a month. On the other hand, properties under $300,000 are being sold in less than a week,” said Castro.