The most recent FAQ.
Costa Rica Real Estate Market present state.
What was the past season like?
Well, initially, I wanted to write that the past season was really slow.
But then, Ii occurred to me that, this is only true with regard to the offers, and deals closed and average quantity of buyers. Those numbers have been down, nevertheless, due to the present state of global economy, there have been an unprecedented number of sellers that have approached us to list their properties. I’d estimate prices have come down between 25-45% in the range of properties up to $350K and, truth to be told, only those properties that are priced to sell (“fire sale” meaning over 40% decrease) have been moving. I would personally encourage most sellers to hold their property for at least a year,
unless they desperately need the money….
I would add that the past season, as well as being busy with sellers, forced us to work more closely with other real estate agencies on our network (currently over 40).
The buyers now are of a different kind than in the last few years. Times, when people were buying on the phone, not even visited the location or Costa Rica in general, are long gone and that’s why our personal approach and comprehensive service started paying off.
This coming High Season?
Most likely, the coming High Season will remain relatively slow. Though considering that oil and other commodity prices are rising again and dollar rate is falling again, it might change.
We already have a high number of the quality listings in the area. September/October/November period typically has a tendency to slow down, but I expect the market to make a significant increase in activity starting from the middle of December.
A few real estate agencies and even more “boiler room” developers have recently gone under, but that might be a good thing for Costa Rica. Prices have stopped sliding down in the last 3-4 months and I think that now it is a good time to buy.
General impressions of the market in Costa Rica?
My general impression is that the market is slow and will continue to be for while, at least relative to the high levels of appreciation and activity in the last 3-5 years. Having said that, I think we (those who invest and/or live in Costa Rica) are in a good position – at least we did not lose our assets.
Prices have come down, reportedly more on the Pacific coast than elsewhere in Costa Rica and there are still people with money who have now had time to mentally adjust to the new world conditions, and Costa Rica remains a desirable permanent or second home destination. We have posted on our blog a couple of current market analyses from other sources, and there are many more where those came from.
What activity levels you might be anticipating for the high season?
Even if the global economy improves only slightly, I believe this high season (beginning in December) will be busier than last year. When people do come down (and they will, judging from the number of bookings we have for our rentals), I believe they will be greatly impressed, as we have excellent properties with a lot of room for appreciation. The buyers that would take their time to explore the North Pacific area will have a chance to score big.
I truly believe that Costa Rica is as desirable as ever. I don’t see prices going much lower here. The dollar, being weak against other currencies, is still strong against the colon (Costa Rica currency).
I think that, whoever is left afloat around here after the initial blow from the last 9 months is going to enjoy a brisk business in the coming season.