Reveal Real Estate
Tuesday, October 6, 2009
The short story is that asking prices in master-planned communities, resort developments and condos projects have fallen between 3 and 9% since September 2008.
Reveal Real Estate has just compiled its year on year analysis of the Costa Rica international real estate market.
The data basically reflects the high-end layers of the housing data since it is primarily comprised of second homes and vacation properties sold with community amenities.
The good news is that the bottom is not falling out of the market - the declines are less than those experienced across many markets in the developed world.
A key reason for this is the relatively undeveloped nature of the mortgage market. Unlike in the US, for example, lender-mediated activity is low and the market is not being dragged down by a large number of loans that are either in delinquent status or in foreclosure.
But property pessimists will doubtless point to the high profile project suspensions such as the St Regis Project, the Rosewood Residences at Costa Carmel and La Punta Papagayo in Gunacaste.
They may also insist that with re-sales (sales from end-user to end-user) continuing to undercut developer direct prices, the data under-reports the extent of the decline and there may be more falls to come.
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