Costa Rica Real Estate Market Update For Atenas – August 2014
What sort of decline/increase have you seen in the number of potential buyers who have contacted you in the last six months in comparison to the previous year?
In terms of new inquiries, we have seen about a 25% decline over this time period last year. Interestingly enough, our web traffic has increased significantly. Where our clients are coming from has also changed, with many new clients coming from Europe, especially France. Also, the number of repeat clients or referrals from clients has increased dramatically.
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, our number of sales has increased by almost 50% over that of last year. We have had many referrals coming from the beach areas, and previous clients. We have worked hard to create a loyal client base and it has been paying off in spades.
What is the easiest real estate sale for you in your area right now?
Our easiest sale is and has always been the $350,000 to $500,000 price range. However, with price increases what you could buy at $350,000 a few years ago, is now selling for $400,000 – $425,000
Where do land prices stand now in your area in comparison with this time last year?
Land prices are stable in our area because our inventory of quality lots and farms is extremely low. It is rare to see land prices decrease in our area or in Costa Rica, generally speaking, because holding costs such as property taxes and maintenance for vacant land are very low. Typically, low holding costs means that owners can hold out for their asking price.
Where do finished home prices stand now in your area in comparison with this time last year?
Finished home prices are stable and have actually increased by about 5% over the last year due to a lack of inventory. We have a HIGH demand for our sweet spot ($350,000-$500,000), with virtually no inventory. 95% of all new construction homes sell before they are complete. Five years ago, we could have shown a potential buyer 8-12 homes in the $350,000 to $500,000 price range. Today, if we have 3-4 quality properties in this price range, it’s a miracle.
What sort of real estate product is currently available in your area?
Currently, we have properties in all price ranges, but not an abundance of any particular product. Several new construction projects are in the works that will be complete with-in the next 4-6 months, with prices ranging from $169,000 to over $500,000.00. Raw land and building lots are hard to come by with the average view lot priced from $125,000.00.
What type of inventory is lacking?
The inventory that we are missing is the $350,000 to $500,000 price range. In this price range, you can expect to get a nice 2 bedroom 2 bath or 3 bedroom, 3 bath pool home, with square footage ranging from 1800 s.f. to over 3,000 s.f. We also get a lot of inquires for nice view homes for under $250,000 This is a major gap in our market, that at the moment, does not exist.
We are virtually in a crisis for long term rental properties. We have a list 15 clients looking for long term rental homes in the $1000 to $1500 per month price range and we have two homes to offer.
Is there an oversupply of any particular product?
At the moment we do not have an oversupply of any particular product. Better yet, we have major shortages in most areas of our market. Our demand is not only driven my the expat market, but locals make up about 40% of buyers in our local Atenas market.
Where are the best opportunities right now in your area?
At the moment, there are a hand full of homes that have been on the market a while and the owners are wanting to move them. We have a beautiful 4,300 s.f. home with five guest houses that has been reduced from $1.2 million to $775,000.00. There are also a few smaller homes in the $150,000 to $199,000 that are exceptional deals for the quality of the property.
How do you feel the real estate market will preform in your area for the remainder of 2014?
The remainder of 2014 is already booked for us. Between mid September and the end of December, we have five buyers returning to Costa Rica to close on deals. In addition, starting in November, we have booked showings all the way into March of 2015. If the numbers continue to hold, 2014 will be a record year for us.
Costa Rica Real Estate Market Update For Atenas – August 2014
Article/Property ID Number 4872
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Andrew Makarik
to@welovecostarica.comAndrew 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.
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