Wrap up of Summer 2015 What Happened in Local Real Estate

In general the real estate market was the most robust it has been in years.  We have seen inventory shrink; however, there are still many homes and condos on the market that are in need of a buyer.  So, it is not yet a seller’s market.  However, the market will respond if a property for sale is priced and presented correctly, and a buyer can grow their equity if they act and buy during this trend.

We did have several properties that sat on the market for years that were finally purchased this summer.  In these cases the market rose to a price point that the sellers were willing to accept.  We had several sellers raise their prices because the market was improving, and frankly, some have just put themselves out of the market again.

Some properties had fair prices but they were under the radar of most buyers.  This was true for non-ocean front lots with limited ocean views even though they are in an organized ocean front community.  It was also true for single family homes in non-conforming communities, such as communities without an organized community association or without the basic amenities.

What continues to be true is that a lot with a house had more buyer activity than a comparable lot without a house.  In 2015 you would have noticed that there are a good number of new houses being built.  This shows that in the short term, hopefully within 2 to 5 years, there will be a more reasonable market for those vacant lots.

Lastly, there is a growing need for streamlined and competitive financing.  I am getting phone calls from people asking how to get a loan to buy a property in Baja.  Today, you still need to be able to buy a property with your own cash or have your financing already in place before you start shopping and making offers, unless you find a rare “owner carry” opportunity or reasonable developer’s financing.  At the time of this writing, there aren’t lenders available (or well-known ones) in our market place that can provide competitive interest rates.  There is such a large difference in the cost of money between US banks and Mexican banks that for most buyers of coastal property, Mexican banks are not financial solutions.

In sum, if you’re a buyer, buy now or pay more later.  If you’re a seller, price your house reasonably and it will sell.  If you have a property that is difficult to sell, you will have to wait longer for the market to recover, or sell it at a price you might not feel comfortable with.

About Mario Restrepo

Mario Restrepo of Baja Open House is offering short classes on how to buy real estate in Baja. Call US +1 (858) 366-4399 to inquire.