What drives real estate and property prices in Nosara, Costa Rica?

The real estate market in Nosara, Costa Rica is affected by a variety of external factors. The most important of these factors, is the general health of the market in the major metropolitan areas from which interested buyers in Nosara Real Estate are coming from. There are a couple of hotspots that seem to be where a large majority of real estate buyers in Nosara originate from – such as the northeast ( including New York City, Long Island and the Hamptons, New Jersey), Colorado, specifically Denver, Boulder, and surrounding areas, and of course, Southern California. Buyers that originate in these areas are very much influenced by the state of affairs of the local real estate markets, and take the experience and market conditions in those local markets, and may apply them when searching for property in Nosara, Costa Rica. In general, the health of the real estate market in Nosara is directly and proportionally related to the markets in these areas. There is an incubation period, and the Nosara markets tend to follow these major real estate markets on a time delay, so what is happening in real estate markets in the US may filter through to the markets here in Nosara – from what I have seen and studied, that time frame seems to be on the 12-18 month duration; ie, the major trends in the states tend to show up as the same trends in Costa Rica real estate, with a lag time of around 1 year. So how is the market doing in some of these real estate hotspots where buyers are coming to Nosara from? Lets take a Look:

 

New York City – New York city rents, and real estate prices are at all time highs once again, on a metric of both median prices and dollar per square foot. The prices seem to be driven by record low interest rates, but the interesting development in fact, is that the majority of bidding wars are being driven up by cash offers. Here is a recent story about condos in Willamsburg, one of the hottest real estate markets in the NYC area (Brooklyn). Three condos recently sold at record prices, in cash, without even hitting the market.

http://www.crainsnewyork.com/article/20130426/REAL_ESTATE/130429897

Denver, Colorado – Many of the buyers in Nosara are coming from the Denver and Colorado area. This is an area that offers similar active lifestyle choices, with outdoor activities and nature being a key theme.  The market in Denver is very healthy, with sales numbers up 46% and the average home price is up nearly 19% in the last year. Read about it here:

Denver Home Sales up 46% in March

Los Angeles, California – California was one of the hardest hit areas during the recession. It has taken a while for home prices to rebound as the huge inventory of foreclosures had kept a lid on prices. But this is what happens at a market bottom – it comes and goes and before you know it, there is a surge in prices as the majority of good homes are no longer on the market and inventory is scarce. Of all the real estate data I have read, this is the most intriguing and relevant to me:

LOS ANGELES REAL ESTATE PRICES ARE UP 50% IN JUST 6 MONTHS!!!!!

Yes, you read that right. Over 50% in just 6 months. Here is a chart of Median Prices:

Lastly, we can look at the Case-Schiller Home price Index:

Case-Shiller home prices rose +1.2% in February. The breadth of house price gains is impressive as this marks the second consecutive month that all 20 cities within the index increased sequentially. Compared to this time last year, home prices are up 9.4% and every city within the index is now in positive territory. Not surprisingly, those areas of the market that previously the most distressed are now posting the largest gains: Phoenix (+23.0%), Atlanta (+16.5%), Detroit (+15.2%), and Las Vegas (+17.6%).

 

All of this info paints a very similar picture; Homes prices are on the rise, with average prices up 9.3% in a year, and many major metropolitan areas that represent a large demographic of buyers in Nosara up between 20-50%. It doesn’t take a rocket scientist to know that these price increases will soon be seen in Nosara. Land and home prices have already rebounded, and are closing in on all time highs – while the number of transactions has also picked up. So what drives real estate prices in Nosara? What are the main influences on the market here? Simply put, the state of the real estate market in the places from which the buyers come to Nosara. And the state of those markets is more than healthy, they are thriving once again. If you have been thinking about a purchase in the Nosara area, now is the time. Please contact us for more information on property, real estate & luxury homes in Nosara, Costa Rica.