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makana.gabriel
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Real estate sales sliding
Real estate sales sliding
BY GARRETT NASWORTHY
The News
Brokers from abroad have seen high-end and large commercial property sales in Mexico stagnate in the past several months, with some saying they are
now selling nothing.
"I have listed mid- to high-range properties in Acapulco, Cancún and Mazatlán that have been receiving many little bites and inquiries, but no one has
been willing to make a purchase," said Richard Miranda, a broker at Uptown Real Estate Group in Houston. He added that properties in the border and
traditional areas of development for foreigners are all susceptible.
Miranda said before the current downturn in sales his firm would close at least 4-5 properties per month.
"Now we have seen a definite downturn in closes, not many people are buying," he said.
Last week, the Mexican Association of Real Estate Professionals, or AMPI, said it had revised down estimates for real estate sales in 2008 due to poor
high-end and border-zone sales.
AMPI expects sales to rise 5 percent year on year in 2008. It had predicted 17 percent growth at the beginning of the year. The border zone has seen
sales drop 50 percent this year versus 2007, AMPI said. Particularly hard hit were coastal destinations.
"What has been a real surprise is that coastal areas have been hit particularly hard, even ones not frequented by U.S. buyers," said Sergio Gómez
Rábago, president of AMPI's chapter covering the Mexico City metropolitan area. European buyers are as thin on the ground as U.S. buyers, he said.
The organization's national executives went as far as asking for government assistance and investment late Thursday, saying that investment was direly
needed to promote sales in its high-end developments.
FAITH sees the invisible, believes the incredible, and receives the impossible!
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Woooosh
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Sliding? Now that's an understatement! Crashed, stalled, anemic, dead are better.
The current security problems were already an issue when they made the 17% growth predictions- they were just stuck on stupid and forgot to put the
negative sign before the 17, that's all. The world econmy is crashing- Mexico will fare worse becaue of the additional challenges beyond the
economic ones.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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tjBill
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So I guess its not only the Gringo market in Baja that's having trouble. Its the entire local and commericial market.
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CaboRon
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You can always sell if you lower the price .....
And keep lowering the price until you have a buyer ....
Simple reality ....
And you may not make any money on the investment ....
But, if you lower it enough you will eventually sell ...
It is simply not worth what you think it is anymore ....
Get real ...... 
CaboRon
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gnukid
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On the other hand, their are many excellent properties in Mexico which have passed hands between two individuals at fair prices, with excellent values
all over.
I think the market for agency sales is not a good market statistic since far more transactions occur without so called 'agents'. I understand that
many sales are taking place in Baja just not silly over-inflated prices on pre-built sales. For those who have a home finished and who would like to
sell at a reasonable price the market is strong, since these homes represent a good value for retirees and also for Mexican Nacionals who make up a
majority of visitors to Baja.
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bajaguy
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I was at the Baja Country Club (Ensenada) last weekend and noticed 4 new homes in various stages of the construction process, and was told that there
will be two more homes started within the next two weeks. Still great values at good prices to be had
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Acuity
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Maybe there's just a lag in BCS, but there's still activity here. In fact, sales of houses YTD are >500% up on last year. Goodness knows where
these people are coming from - they must live in a different economy to that which I inhabit!
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CaboRon
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| Quote: | Originally posted by Acuity
Maybe there's just a lag in BCS, but there's still activity here. In fact, sales of houses YTD are >500% up on last year. Goodness knows where
these people are coming from - they must live in a different economy to that which I inhabit! |
What does that mean ?
>500% literally means less than 500%
A little too obtuse for me.
CaboRon
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tripledigitken
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| Quote: | Originally posted by CaboRon
What does that mean ?
>500% literally means less than 500%
A little too obtuse for me.
CaboRon |
CaboRon,
Correction...........it is just the reverse:
>=greater than
<=less than
Agree the concept of sales that high seems obtuse to me.
Ken
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Barry A.
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My ex-wife is a broker/agent of high-end resort properties in the Utah/Colorado area-------she says as of about 5 weeks ago the high-end market has
gone "dead"--------"kaput".
Hopefully a temporary phenominae (sp?)
Barry
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Pescador
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A friend who is in the high end sales told me that it started out pretty slow and definately tapered off from there.
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Bronco
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| Quote: | Originally posted by gnukid
On the other hand, their are many excellent properties in Mexico which have passed hands between two individuals at fair prices, with excellent values
all over.
I think the market for agency sales is not a good market statistic since far more transactions occur without so called 'agents'. I understand that
many sales are taking place in Baja just not silly over-inflated prices on pre-built sales. For those who have a home finished and who would like to
sell at a reasonable price the market is strong, since these homes represent a good value for retirees and also for Mexican Nacionals who make up a
majority of visitors to Baja. |
I'm sorry but could you give a real,concrete example. I still have trouble getting my friends down for a visit. Some are retiree status with a few
shekels, love a good deal and they think we are out of our trees. 11yrs here and love it! 30+years of traveling all of Mexico.
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greybaby
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We've had to put our house in Cantu in the market since it's just too hard for us to maintain from a distance. And let me tell you, it's a steal.
Less than we have in it and a large corner lot. Someone will get a great deal. If retirees have lost in the stockmarket (who hasn't???), they can
buy in Baja and have money left over. If we weren't working, I'd just head right back there. Especially this time of year.
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Hook
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| Quote: | Originally posted by bajaguy
I was at the Baja Country Club (Ensenada) last weekend and noticed 4 new homes in various stages of the construction process, and was told that there
will be two more homes started within the next two weeks. Still great values at good prices to be had |
Maybe prices have come down enough for some of the locals to afford them. Maybe builders are desperate and cutting prices.
Is Baja Country Club a gated community? That might be a big draw, given the situation in northern Baja.
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bajaguy
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| Quote: | Originally posted by Hook
| Quote: | Originally posted by bajaguy
I was at the Baja Country Club (Ensenada) last weekend and noticed 4 new homes in various stages of the construction process, and was told that there
will be two more homes started within the next two weeks. Still great values at good prices to be had |
Maybe prices have come down enough for some of the locals to afford them. Maybe builders are desperate and cutting prices.
Is Baja Country Club a gated community? That might be a big draw, given the situation in northern Baja. |
Yup, gated and 24/7 security.....off the beaten track, quite peaceful
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slimshady
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Heard from my friends in Los Barriles that the market is dead. If you are lucky to have money this would be a great time to buy a lot. I just started
construction on my lot in Los Barriles and am taking advantage of the low peso to dollar value as well as cheaper materials.
I have yet to build my home in the Corridor yet, just waiting for the construction costs to come down from 200 per square foot to about 160 per square
foot. Southern Baja ballooned just like the U.S. and are not at its bottom yet. The market was supported by European and Asian investors who thought
they were immune from the U.S. turmoil. But now since we are in world recession the baja real estate boom has difinitely subsided.
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Pancho
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Isn't Los Barriles the most expensive community in Baja? Have you seen the inflated values? Perhaps the fact that few people can get large loans make
high end investment unlikely though the under $200,000 is more likely to see action since liquid cash in smaller amounts is more prevalent with few
strong stock market and money market options available. If you had 200,000 you need to put it somewhere and there are few options.
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buddha
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country club memberships
| Quote: | | Yup, gated and 24/7 security.....off the beaten track, quite peaceful |
Can someone just buy a golf membership and what do they cost nowadays?
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bajaguy
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Yes, they do, but I do not know the fee. I checked their web site, but only daily (round) fees posted. Maybe Lizard Lips will chime in as he is a
regular there.
Homes with lots are starting at $153,000(USD)
bajacountryclub.com
[Edited on 11-19-2008 by bajaguy]
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cftlet
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Is that 200 a square ft price fairly standard or is Los Barriles just really over priced? I guess our dream of having a place on the east cape is
getting a little dimmer.
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