Costa Rica Real Estate – Progress Report 25th July 2006

The real estate market that is of most concern to the Costa Rican real estate market for second homes is of course the USA where the number of unsold homes for sale is dramatically higher in most areas and asking prices are coming down.

According to a network of Realtors in the USA, the following areas are suffering the most:

• Boston – Number of unsold homes are up by 60%
• Los Angeles – Up by 175%
• New York – Up by 69%
• Orlando – Up by 397%
• Phoenix – Up by 298%
• Sacramento – Up by 136%
• San Diego – Up by 92%
• San Francisco – Up by 112%
• Tampa – Up by 294%
• Washington – Up by 188%

A June survey of real estate agents by Banc of America Securities discovered that home prices had weakened in 30 of the 42 metropolitan areas covered.

Costa Rican Real Estate Market:

I speak with our Preferred Real Estate Professionals on a regular basis and it was time for a progress report about Costa Rica real estate.

1. North West Pacific – Linda Gray of Coldwell Banker tells me that in her area, her sales are about flat over the last year but “pre-construction condos” are selling well because; “new completed condominiums are hard to find. We would probably do a lot better if we had more completed condominiums.” And anything under $300K sells fast.
2. Central Pacific – Penny Layman of PJL Properties tells me that sales in her area are down slightly by about 10%.
3. South Pacific – Sean McGraw of Coldwell Banker says that “sales are up by about 25%” over the same time last year.
4. Caribbean – Manuel Pinto of CaribeSur Real Estate says that: “Business this year is 30-40% higher even with more competition in our area.”
5. Central Valley – Roy Quiros in Heredia says that “This will be the best year in five years,” and that “real estate sales are up by at least 25%” in the first six months of 2006 in comparison with the first six months of 2005.

Speaking from personal experience, over the last four weeks alone, twelve of our VIP Members have purchased condos priced from US$161,000 – US$550,000

And according to La Nacion, in the Central Pacific town of Jaco new construction is up 46% over the first six months of last year and with recent announcements, it would appear that growth in Jaco is actually accelerating.

My thanks to Russ Martin for his help in getting this feedback below from the professional real estate brokers that he works with:

• “I reckon 10% up.” Barry Ashworth, Escazu & Santa Ana.
• “My business is steady but not as good as it has been the last couple of years. Now, the ocean view lots we were selling for $125K to $250K are gone and prices start at $250K.” Larry Albright – Flamingo & Potrero
• “I’ve been much busier this year, but largely because of my work in Escazú. But I have had much more interest on the East side, too. So I would conservatively give it a 25% increase for the East side.” Patrick Mulheren, East San Jose
• “Samara have been growing to fast the last few years, the business is not bad but not like the last two years, the prices are still stable.” Peter Marte in Samara

According to Ivo Henfing, a successful real estate broker who specializes in Escazu & Santa Ana:

“The market in the Central Valley is changing totally. We would hardly ever sell any condos or townhouses in gated communities before but the last eighteen months a large part of my market is exactly that, due to the babyboomers who are looking for a lock up and leave situation to be able to travel. GW Bush, the hurricanes in Florida, lower property taxes and a lower cost of life are the main reasons for the North-American market to move. They are still the largest percentage of my market.

The Internet gives those who want to move to Costa Rica the possibility of due diligence and most arrive a lot more educated about their new country than 5 or 10 years ago. Besides, word about Costa Rica is out now.

Escazu is still going strong and though there is word about all those condos being built and being empty is not true. Yes, some high-rises with apartments for over $500K are not selling very fast, but everything under $300K is selling like hot cakes.

Most new developments sell out before they finish construction. Not only the North-Americans, Colombians and Venezuelans are buying these, but the Tico market is also becoming much stronger as the just married are professionals, both work and have few children.

I see that what happened back home 30 years ago, is now happening here. Private banking is making mortgages more accessible and many more Ticos have well paid jobs than 10 years ago. Scotiabank for example has mortgages available for non-residents and I have closed this and last year many with financing to foreigners, while before most purchases were cash.

Santa Ana is moving west, not due to the stories about the new highway, but because of the space available, the new shopping areas there and a warmer climate with less rain.

Growth will keep going west until it gets to Atenas, with the new highway or without due to the zoning laws as land cannot be subdivided like Escazu was. I recognize in Atenas what Escazu used to be 26 years ago when I came here and it has only kept growing ever since.

I have seen a slow market in those 26 years, but never a real estate crash and as I see it, the real estate market will only keep growing on the Westside of San Jose until we hit the Central Pacific.”

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If you have a serious interest in buying real estate and would like a highly recommended and trustworthy Costa Rica Realtor to help you, please choose from the two options below:

1. Our free Help-U-Search service has helped thousands of VIP Members to find their dream home in Costa Rica. The only people recommended are people who are personally known and trusted by Scott Oliver, author of How To Buy Costa Rica Real Estate Without Losing Your Camisa. If you would like Scott to recommend one of our preferred Costa Rica Realtors to you now, please visit Help-U-Search. Or…
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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.