Puerto Rico's Housing Market Reveals Challenges: RED Atlas Data Brings OCIF's Positive Outlook into Question (2024)

As the CEO of Puerto Rico's first comprehensive real estate data platform, I'm committed to providing the most accurate and timely insights into Puerto Rico's housing market. I believe it's essential to shed light on the harsh realities we face, as only through a clear understanding can we take strategic action. Recent data published by our firm suggests a more serious downturn in our housing market than previously indicated by the Office of the Commissioner of Financial Institutions (OCIF).

We harness artificial intelligence (AI) at RED Atlas to process diverse datasets and offer valuable insights. Our analysis reveals a significant 40.5% plunge in transaction volume from Q1 2022 to Q1 2023, contrasting starkly with the OCIF's 11% reported decline. We anticipate the situation worsening in Q2 2023, with a projected drop of 63.4% year-on-year.

Our data also signals a decrease in the average transaction price, pointing to a devaluation in housing prices. A 20.4% decline is observed from Q1 2022 to Q1 2023, with a forecasted decrease of 17.9% in Q2 2023. This is contrary to the OCIF's data, which implied a slight 2% rise in prices.

The number of transactions mirrors the steep drop in housing sales. We've seen a 25.3% drop from the first quarter of 2022 to 2023, which is twice as much as the OCIF reported. Looking ahead to the second quarter of 2023, we're predicting a 55.5% decrease, which really challenges the OCIF's estimates.

The considerable disparities between our findings and the OCIF's point to potential differences in data sources or analytical methods. It is essential that these discrepancies be thoroughly investigated to ensure an accurate understanding of our housing market.

At RED Atlas, we're revolutionizing the property market landscape through AI. We leverage machine learning and big data to analyze and refine data from diverse sources, including the CRIM and Karibe databases, providing the most accurate market trends. Our commitment to transparency and accuracy extends beyond using governmental databases. We also incorporate real estate listing data into our analysis, offering a comprehensive and real-time view of market fluctuations in pricing, demand, and supply.

We are striving to deliver actionable analytics that guide strategic decision-making for investors, realtors, and homebuyers alike. Our use of advanced algorithms to curate various data sources underlines our dedication to provide the most reliable insights into Puerto Rico's real estate market. It's this commitment to transparency, accuracy, and innovation that has driven our efforts at RED Atlas since day one, and will continue to do so.