You may have heard that around the world many real estate markets are experiencing unprecedented, record-setting real estate booms. Santa Teresa is no exception. Against all predictions and expectations at the beginning of this pandemic, Covid-19 pandemic has affected the real estate industry in quite a surprising way.
As humanity, on a global scale, was forced to change their daily lives within a matter of weeks and months, a record number of people have bought homes during the pandemic. You might ask yourself.. why?
The move to exclusively working and studying online from home has pushed millions of people out of cities all around the world and led them to home purchases in natural destinations, resort markets and lifestyle locations. People have been forced to ask themselves, where they really want to be, and due to the fact that so many of them have the freedom to work online from anywhere, there has been a massive impulse and migration to destinations and markets where LIVING and LIFESTYLE become priorities.
In Santa Teresa we are seeing many travelers who have been coming here for years as tourists are now becoming investors and are actively purchasing. We have also seen a large number of people who were stuck here during the pandemic purchase, and of course many clients from markets like London, Manhattan, LA and so on, who are here and looking to buy as soon as possible. It is amazing how an initial feeling of being “trapped” and unable to travel ultimately has led to these same people finding liberation in the freedom, beauty and lifestyle they have discovered. We expect the trend to continue throughout 2021 and 2022.
The average buyers seem to be willing to spend more money and time in general here now as they have shifted from wanting to spend 2-4 weeks of the year to 4-6 months. They also are looking for homes with more bedrooms and ideally home office space, versus vacation rental properties. The focus has shifted from smaller vacation rental homes in many cases to larger, most permanent or part time family homes. Most buyers are searching for space, easy beach and surf access, views, office space as well as open air living areas. The market in general is more active, not just for high end home buyers, we have more clients looking for smaller lots and homes, more clients looking development opportunites as well.
With record breaking pace at which listings are selling, our market has dramatically shifted to a seller’s market in a few short months. Currently in the Santa Teresa market we are seeing things get listed and going under contract at incredible speed! Home prices are rising, and there is limited inventory for buyers.
The record-setting pace is good news for sellers but makes for a difficult experience for buyers. In many cases, potential buyers are outpriced in the competitive market or forced to make rush decisions.
During our periodic virtual meetings with The LRE (Luxuryrealesate.com) network we continue to hear about the record breaking market in virtual all lifestyle destinations the last few months. Incredible stories from friends and brokers in lifestyle and destination markets such as Aspen, Maui, Park City, Tahoe, The Caribbean islands, Mexico, as well as of course the suburbs of the major cities. Markets are on fire like no one has seen before.
We have learned that people are choosing to leave high-tax areas as the work from anywhere trend seems will be a long lasting one. There is no reason to stay anchored in a place where you no longer have to commute to your work place. According to Forbes, more than half of homebuyers say the pandemic accelerated their homebuying process.
Houses are flying off the markets because of a general supply shortage and an exponential increase in demand. Experts predict that this market trend and demand should hold steady throughout 2021 and into the future.
Costa Rica has stood out internationally as a fantastic option for many buyers for many reasons. This country offers a great alternative with natural beauty, steady and fast internet connections, easy travel access from the US and Europe, similar time zones as the US workdays, a steady and democratic government. Another appealing factor that of course stands out is that when investing in real estate, when compared to other markets, your money goes a long way, it is good value for your money, with a higher and healthier quality of life, there are good international schools, and the list goes on.
Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent who really knows your local market.
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