Recently I caught up with Costa Rica Realtor in Jaco David Karr to talk with him more about the real estate market condition on the Central Pacific coast.

David has been living in Costa Rica since 2005 and he shared some news and his thoughts about what’s been happening in the past year.

How has the real estate market been in the Central Pacific region of Costa Rica in 2012?

Sales have improved from the previous year. I know many people will question that, and by no means is it like anything in the peak years of the mid 2000s, but across the board there has certainly been more sales and activity than 2011.

The key is still good location, good views and/or access, and the right price, properties that fit those three are selling. We still have a lot of gridlock with many sellers not in the desperate situations to sell in which many buyers are seeking, it might sound crazy but there are a lot of sales that aren’t being made over a difference of 10%, that’s gridlock!

But with the global economy in tough shape aren’t there foreclosures, distressed sales, there has to be plenty of sellers who are in a bind right?

Not really. Our market has always been primarily a cash market, so banks are rarely involved and that has also kept the bottom from falling out.

And because we have a good tourism and vacation rental market, most sellers simply rent out their property to cover their expenses which really does not create the same urgency for them to sell.

There are always a handful of what I’d consider tremendous deals, but its simply supply and demand, there are few of them and lots who want them so those deals typically move fast.

How can someone find one of those great real estate deals?

A great value is really in retrospect. Each person’s interpretation might be a bit different. Is a great deal 20% under market value, 50%?

What is even more important to understand is that any good Costa Rica Realtor is going to help their client obtain a terrific value when it’s a buyer’s market, that’s the easy part, but there is more to it.

I can go to a department store and might find an Armani suit on clearance reduced by 80%, but if it’s not exactly my size, doesn’t really fit, and I never wear it, then is it really a good deal?

Go backwards, identify your goals and where you want to be, then focus on the best value available within those parameters. Then choose a Realtor who has their ear to the ground and knows which sellers really are motivated.

I try to help my clients get the best values, but more importantly, I help them get the right property for them, and that’s the key.

Is the highway from Escazu to Puntarenas still affecting Jaco?

Absolutely. Virtually every weekend there are people in town. It used to be that our tourism was dependent on foreigners and was more seasonal, but local tourism is just booming.

More and more Costa Ricans are coming here on holidays, for a weekend stay, or even just for a day trip. This might not be as lucrative as some rich gringos coming down for two weeks, but it’s traffic and it still good business.

Local Costa Ricans are also renting and purchasing properties and all of this is helping stimulate our market.

What else is new in the Central Pacific?

Jaco is still seeing most of the growth and improvements, as the infrastructure and investment is all coming here. There is a new soccer stadium set to start construction at the beginning of next year.

A new condo-hotel project just broke ground, which is one of the first new projects to start construction in some time, and many storefronts continue to remodel.

Five years ago I used to have clients looking for property tell me I’d like to look at all the areas in the Central Pacific, but prefer to be outside of Jaco, now more and more are saying the opposite where they want to be specifically and only in Jaco.

How would you say real estate prices have changed in your area over the past five years? And how do you see them changing over the next five years?

It’s always hard to summarize prices because location and property types really vary so much. Beachfront properties have done fairly well for the most part, with a 20-30% drop from their absolute highest peak, and most prices back to pre-construction prices of the mid 2000s.

Properties under $200,000 near the beach are heavily in demand and low in supply, so those properties have not slid much the past 5 years, maybe 10-15% at the most.

What’s important to understand is the difference between price and value. In Costa Rica it’s often difficult to distinguish the two because of the lack of an official MLS. It is still an outstanding time to purchase, but I can’t stress the importance of seeking professional guidance in learning the market before making a decision.

What is your outlook for Costa Rica real estate moving forward?

I think the San Jose market is going to continue to merge with the Central Pacific. Those in the city are going to continue to come more and more during the weekends.

A one hour drive is just too close not to come enjoy this beautiful weather and beach life.

What’s great about the Central Pacific is it’s not all Jaco. From rustic areas like Hermosa, more secluded spots like Esterillos and luxurious ground of Los Sueños, it’s more than Jaco.

I think the entire area provides a great variety for types of people and think more are discovering that this is one of the best areas in Costa Rica.

My thanks to Costa Rica Realtor David Karr in Jaco for his time and very helpful information.

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For more information about condos, homes and land for sale in the beach town of Jaco and surrounding areas please contact our Recommended Realtors in Jaco Shawn Fletcher and his wife Hannah Fletcher
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Andrew Makarik

to@welovecostarica.com

Andrew 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.