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Real Estate Market Report - Costa Rica July 2022

As many of you are aware, inflation rates have surged dramatically, causing the cost of living to increase by nearly 25-30% in certain countries. In an effort to curb inflation, interest rates have been raised and another hike is imminent. Concurrently, we've seen a dip in the stock market and gas prices are climbing to historic highs. Like everyone else, you're probably asking, "What's next?" Opinions vary among experts - some predict an incoming recession, while others assert that it may not occur at all. The outlook for 2022, therefore, remains somewhat ambiguous.
No one can definitively predict property prices a year from now - the National Association of Realtors (NAR), of which I am a member, is forecasting a slowdown. I perceive this as "the beginning of the end" for the seller's market as we've known it since the pandemic; the days of astronomical asking prices are numbered. Reasonable asking prices are likely to become more commonplace, with prices expected to stabilize at levels approximately 10-15% higher than pre-pandemic rates, yet notably lower than those seen six months ago.
The combined impact of increasing rates and dwindling inventory has prompted many prospective buyers to delay their purchases. Meanwhile, some sellers continue to hold out for higher prices. However, those sellers who are more motivated to finalize a sale began lowering their asking prices to more realistic figures about a month ago - signaling a good time for buyers to re-enter the market! The real estate sector is likely to continue its shift from a sellers' market towards a more balanced landscape, favoring buyers throughout 2022. This change will be accompanied by an uptick in the number of homes listed for sale.
When you're ready to buy or sell, I'll be privileged to assist you.

~Isabelle Emond, Owner/Broker