1. What sort of decline/increase have you see in the number of potential buyers who have contacted you in the last six months in comparison to the previous year?
   [custom_script adID=149]

   I continue to see an increase in overall leads as the market conditions improve and our firm gains more market share. The gap between where buyers believe the market is, and where sellers believe the market is, is narrowing, and my job is to build a bridge and close the gap. The best thing about the market in the western central valley is that our demand is not based on speculation. It is based on real need.

   I am a true believer that JOBS are the biggest factor of real estate value. Unlike coastal markets or rural communities we have real jobs here that pay real salaries and our market and my clients are the people who have these jobs and NEED to buy or sell their primary residence or commercial property.



2. How has the number of sales declined or risen in the last six months in comparison to the previous year?

   In the past six months sales are better than they were a year ago. I believe people have realized that the central valley is not going to take a big dip in price.

   Last year, many people sat on the sidelines waiting to see what would happen…for prices to go down, but they remained relatively steady and now with a decline in interest rates people are realizing that there is no better time than now to buy. In fact, I bought a home in 2009 feel confident that I made the right move at the right time.



[custom_script adID=155]
3. What is the easiest real estate sale for you in your area right now?

   Since I work with many different segments of the market there is no ONE property. In general most first time home buyers will want a 3 bedroom home/townhome with maid’s quarters, 2 parking spaces, 24/7 security, amenities and reasonable monthly fees.

   If I have a home like this in a good area of Escazu or Santa Ana for $200-$300K, it is very marketable and there is strong demand as this is probably the largest segment of our buyer pool.

4. Where do land prices stand now in your area in comparison with this time last year?

   Prices are about the same. Raw land continues to be harder to sell than anything else. Banks are not financing new projects and buyers are buying in pre-construction, so there is low demand for development parcels. Buyers these days want to feel comfortable with an exit strategy, no one wants to buy raw land just to take over the current seller’s position.



5. Where do finished home/condo prices stand now in your area in comparison with this time last year?

   The level is about the same as last year. We have not seen an across the board gain/loss in values. Transactions are increasing, and values are holding steady. If you want to sell, you have to get realistic, and you have to be the best deal on the block. Buyers are looking for any reason not to buy, so if your home is not priced right, or is staged wrong, or has other issues, buyers will simply discard it and move on. You have to be the cutest baby.

6. What sort of real estate product is currently available in your area? What are you lacking? Is there an oversupply of any particular product?

   I spoke about the entry level segment from $200K-$300K above. In this range your choice is Townhome or Tower. Both offer amenities, security, and convenience.

   In the middle segment of $400-$800K there is a lack of quality properties on the market. These homes are for the guys moving out of the starter townhomes and condos, but that can’t yet make the move into a 500 sq. meter house in Villa Real for $1mm+.

   This is a segment that I think will see real growth over the next 5 years as all of JOBS here have created an upwardly mobile middle class in their 30’s and early 40s. These are the junior partners at the law firms, the architects, the business owners, guys that are the movers and shakers now, and guys that will continue to grow their personal wealth and will choose to move up the property ladder as well.

   In the luxury segment, we have been selling homes in Villa Real in the $900K-$1.2mm mark. These homes are generally 400-500 sq. meters on nice lots with views, privacy, and luxury finishes. Homes in the $1.5m to $2.5mm+ range are rare to transact. There are just so few buyers that have this kind of liquidity and if they do they want to get the house listed at $2.5mm for $1.5mm

[custom_script adID=151]
7. Where are the best real estate investment opportunities right now in your area?

   For the guy who wants equity, the best deals are to buy a home in the right location that needs a remodel… new baths and kitchens, add a bedroom, fix a problem, landscaping, etc.

   I often have bank foreclosures that can fall into this category as well as other homes that are simply priced right. For the cash flow investor, there are commercial properties with A grade tenants that produce 8-10% returns. These are office spaces where the tenants have remodeled the space on their own dime, or bodegas with significant tenant improvements as well.

   As many of these office and bodegas are now built with the condo regime, they can be managed in a hands off manner and provide a solid cash flow and great diversification for an investor’s portfolio.



[custom_script adID=153]
8. How do you feel the real estate market will perform in your area for the remainder of 2011?

   I think we will continue with the solid pace we have now with a slight upward trend. 2010 was better than 2009, but if your house is still for sale then you have to take action. Waiting on the market to change is not the right strategy.

   The upward trend in the past year is more of a result of sellers getting realistic and enticing buyers to get off the sidelines. In the central valley, we have strong new household creation, low interest rates, a good job market and a lack of new projects on the horizon so current inventories should sell as long as the sellers are ready to be realistic.

[custom_script adID=97]

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.