Fejeran to Guam Chamber of Commerce: Guam's housing market faces rising prices

BY PAULY SUBA 
Journal Staff

The Guam housing market continues to see rising home prices, legal shifts, and growing affordability pressures, according to Guam Association of Realtors CEO Sheri Fejeran, who addressed business leaders on Aug. 27 at the Guam Chamber of Commerce general membership meeting held at the Hilton Guam Resort and Spa, Tumon.

Fejeran, a John F. Kennedy High School graduate who studied at the University of Guam and Arizona State University, returned to the island after a decorated real estate career in California. She has served as CEO of the Guam Association of Realtors since April 2024.

In a presentation blending humor, market analysis, and serious policy discussion, Fejeran described the industry as being in “a whirlwind” due to interest rate hikes, legal scrutiny over commission structures, and supply challenges exacerbated by the military buildup.

“We’ve had bad apples in our industry that are doing some things and saying some things that they probably should have saved for their shower talk,” Fejeran said. “And we have had some serious lawsuits… mainly around commission structure. Commission has always, let me say this again... commission has always been negotiable.”

Using data as of August 21, Fejeran highlighted several year-over-year market shifts:
    •    Average single-family home price: $507,837 (2025) vs. $493,968 (2024)
    •    Average days on market: 140 (2025) vs. 125 (2024)
    •    Units sold: 186 (2025) vs. 215 (2024)
    •    Current inventory: 9 months’ worth

“These are just plain, raw stats,” she cautioned. “It doesn’t take into consideration how many bedrooms, how many bathrooms, do you have an ocean view, did you remodel?”

She said that even a slight increase in mortgage interest rates could dramatically affect affordability over time. “Right now, with so much talk about where the market is going, what interest rates should be doing, what stock markets are doing, nobody really knows,” she said. “A lot of people are holding out. They don’t want to buy yet.”

Fejeran highlighted how relatively small changes in mortgage rates can impact monthly housing costs. Citing Zillow data, she said, “a typical home cost roughly $369,000,” and that “buyers who put down 20% on a house and financed at a 6.77% mortgage rate… have a monthly principal and interest payment of $1,918.”

“In contrast,” she said, “homeowners who bought a home at the same time in 2024… when the mortgage rate was 6.86%, are paying $1,927 a month.”

Although the difference may seem small, Fejeran said “there’s a lot of people holding out” in today’s uncertain market, not knowing “what interest rates should be doing, what stock markets are doing.”

Fejeran said the housing affordability gap has widened significantly over the past decade. “In 2015, you could buy a home for $220,000. Today, obviously, the average… is $507,000. More than double in a decade.”

One of Fejeran’s most pointed terms was her reference to Guam’s “hidden homeless” population. “How many of you guys know who the hidden homeless are?” she asked. “They are our kids, our uncle, our nephews, our nieces that live with us because they can’t afford to buy a property right now.”

“They live in a home, obviously, but it’s not their home, and they’d love to buy a home, but they can’t,” she said.

Fejeran said the island’s limited land availability, high construction costs, and lack of infrastructure are key barriers. “We’ve got a lot of land, but it’s obviously not usable. There’s no infrastructure. And the zoning issue… that is a big, big, big problem.”

She said collaboration is key to moving forward. “To address Guam’s housing challenges and create new opportunities, we must, foster collaboration between government, developers, and financial institutions, while streamlining regulations and leveraging innovative solutions like mixed-use and modular housing and rezoning.”

She also advocated for increased support for first-time buyers. Fejeran said, “Expand financial assistance programs for first-time buyers and use data-driven plans to ensure that housing growth meets the island’s needs efficiently and sustainably.”

“And by taking these steps,” Fejeran said, “we can build a stronger, more accessible housing market for all residents. Sounds simple… right?!”

Fejeran said the military buildup is a major driver of housing demand and stressed the need for solutions involving federal partners. “People need places to live,” she said. “We used to live at Andersen Air Force Base, and my house is gone. All my friends’ houses are gone.”

Despite the challenges, Fejeran expressed optimism that Guam is on the right path. She praised local lawmakers for recent efforts, including legislation tied to accessory dwelling units (ADUs), streamlining business licensing, and zoning reform.

Fejeran encouraged consumers to be proactive and informed. “Work with the experts! GAR Realtors play a crucial role in navigating contracts, disclosures, and market strategy,” she said.

She advised investors to “keep an eye on areas undergoing infrastructure upgrades, as these can increase property values and demand,” and emphasized the importance of pricing homes correctly. “Pay attention to the market and price accordingly… the longer the home stays on the market, the longer it will take to sell, and you end up chasing the market.”

And for homebuyers wondering when to act, Fejeran had a clear answer. “When is the best time to buy real estate? Yesterday… or at least before your dream home becomes someone else’s dream home.” mbj