Forums > Areas > Jalisco's Lake Chapala Region

mickeyz

May 3, 2003, 9:28 AM

Post #1 of 4 (450 views)

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Price of Real Estate Dropping??

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I have seen several comments about the price of real estate dropping in the Lakeside area and many houses being on the market for a long time.

Do you find this to be true? If so, why do you think this is? How much is it dropping and how overpriced are the homes currently on the market? I have heard some people say homes are selling for 30% less than asking price??

If this is all true, do you think this is just a result of downturn in investments stateside? Does it have anything to do with the Lake problems? Are there less people coming to the area than say 3 years ago?

Looking forward to hearing everyones take on this.

juan david

May 3, 2003, 2:14 PM

Post #2 of 4 (429 views)

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Re: [mickeyz] Price of Real Estate Dropping??

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We've just gone through the buying process. Here's some thoughts, but others may differ. First of all, this market is different. Lot's of people will put a property on the market just to see if they can get a certain price and many (not all) agents go along with the game. So you have some fair percentage of the inventory that is inflated in listing price. But there are properties that are priced to sell. I'm guessing that buy prices...which are not revealed...are between 10 and 30 percent below asking prices. It all depends on how realistic the asking price was in the first place. As to the difference today versus two years ago, I've heard 15-20% less, but I don't know this for sure.

Condition of the lake is a factor, but had to have been a factor over the last five years. What has changed is the number of buyers with cash. The political climate in North America since 9/11 coupled with shrinking retiree portfolios has really reduced the number of people moving here. Logic says this will change after the markets improve and with a more secure political environment....whenever that happens! There's a lot of boomers waiting to retire. That leaves the lake as the big wild card. We know lots of people who are perpetual renters and lots who own. It's such an individual decision. But everyone should rent until they get comfortable with the area.
" let sleeping dogs lie"

PeggyS

May 4, 2003, 1:28 AM

Post #3 of 4 (402 views)

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Re: [mickeyz] Price of Real Estate Dropping??

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Hi Mickey - We had a home in Chula Vista, great view, wonderful neighbors, talked it over and decided to move to upper Ajijic where we could walk to everything and not have to get out the car if we wanted a loaf of bread. We offered a mortgage, half now, and paymenta at 8% for five years. The place sold fast at the asking price. We paid cash for the new home here in Ajijic and got it for just under the asking price. An internet friend came down for her first visit, arrived on a Sunday evening, looked at houses on Monday, made an offer on a house on Tuesday (it had come on the market That Morning), it was accepted the same day with a seller-held mortgage that she was very comfortable with, and she is one of the happiest people I know in Ajijic. So instead of her paying rent, which just goes down the drain, her payments are buying her "the house of her dreams" as she happily says. On the other hand, there are two examples of houses near us that have been on the market for ages. I don't know what is wrong with them and others, I just know that I would not be interested in buying either one. One is too close to the carretara and the noise and carbon monoxide, and the other is in a lousy neighborhood even though it's a few blocks from us. It's hard to explain, some sell immediately regardless of price, others stay unsold for ages. Who can guess? But the houses are selling, and if the prices are realistic (not giveaways) they often sell quite quickly. Our recent experiences have been great and we love our new house in the village.

Villa de RQ

May 4, 2003, 7:52 AM

Post #4 of 4 (387 views)

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Re: [mickeyz] Price of Real Estate Dropping??

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I am not living Lakeside yet but have done some research on the real estate market. I have found the realtors will try to make you believe if you do not buy now there will be NO houses for sale next year.

I have managed to get actual sale prices on some of the homes I toured and tracked. One substantial home I know of listed for $200k, then $175K, reduced to $150K and sold for $125K. The realtors or private individuals that have shared actual selling price data reveal a 20/30% reduction in prices. Also, many homes come on the market due to one of the partners passing away and the other without support moving back to US.

Keep in mind, CASH, CASH. It limits the selling market real quick.
Bernie Gudaitis