Costa Rica Real Estate Market Update For The Playa Hermosa Area in Guanacaste
Well, it is time again for that boring Costa Rica Real Estate Market Update. If you only read my articles so you can live vicariously through my adventures of white water rafting, the consumation of alcoholic beverages and chasing beautiful women, then just go ahead and delete this article now…
Those of you interested in the real estate side of my life; please read on.
We have been very busy the first quarter of 2015. More and more North Americans have come out of this recession with a renewed interest in living, working and retiring in a more relaxed, tropical environment.
You cannot turn on the news without seeing images of police brutality and riots in the streets, beheadings in the Middle East, oil prices plummeting and destructive acts of Mother Nature. With record cold winters up North, droughts in the west and the economy still very stagnant in much of the USA, people are realizing that living in Costa Rica has many advantages.
Tourism and airport entries are at an all-time high, as many foreigners are visiting this amazing country for the very first time. Some of these people contact a professional and start their search for a little piece of paradise.
Vacation rentals are booming, giving many buyers a feeling of confidence, as they invest in the real estate sector of Costa Rica. Most of the FIRE SALES are gone, and we are running out of inventory. This is fueling a surge of sales, as people are feeling the fear of losing out.
The target market of $200K – $400K is almost completely dried up, and ocean view homes in the half million dollar range are dwindling very fast as well. This is causing many to consider purchasing a buildable lot instead, and we are seeing a tremendous amount of new construction; more than at any time since prior to the 2008 crash.
At one time, a buyer had dozens maybe even one hundred potential lots to pick from that were “priced to sell.” This market as well is starting to shrink, leaving people with fewer options than before. I cannot begin to tell you how many clients have been in my car for the second or third time in the same amount of years, who comment that very little is left on the market from their previous trip. So they step up their game, and make an offer.
The decline of the Canadian dollar has unfortunately forced some of those buyers to reassess their purchase power, but it has not translated necessarily into a lower volume of sales; just lower purchase prices. People that had a $200K budget are just now focusing on properties under $150,000 and so on up the price point ladder.
Most Canadians are realizing that their dollar will be devalued for at least the next 2 – 3 years, from what all the experts are saying. Since prices here will ultimately go up 10% to 20% or more during that time, my Canadian buyers are realizing it is better to bite the bullet now, than hope to find a discounted house in 2018. And again, the increase in the price tag is not as big of a concern as the lack of choices at that particular price point.
Costa Rica continues to invest in upgrading their infrastructure, from the new Pan American highway to state of the art internet and telecommunications and more large companies are relocating their headquarters to this country, creating a multitude of jobs and opportunities. Many of these executives are purchasing homes and condos as well.
I would encourage all of my clients, that if you are thinking about making the leap and investing in paradise, I would do it sooner than later, as we are slowly seeing the climate change from a Buyer’s to a Seller’s market.
Hope to see you down here soon.
Costa Rica Real Estate Market Update For The Playa Hermosa Area in Guanacaste
Article/Property ID Number 5269
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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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