According to this story in La Prensa Tuesday, homes sales has slowed dramatically in Boquete since the economic tsunami made landfall. Real estate agents say it is only down 50% and the mayor says more like 90%. They both may be right because the mayor's office issues building permits and real estate agents sell finished products. A number of people have had to sell their second homes in order to take care of other bills back home. I know that our market of $200-400K homes has virtually dried up. Now we see over a million dollar homes moving. This is not surprising as we market to those with money who are wanting to protect it.
We have seen a significant slow down in new home construction and those developers I know are operating at a snails pace trying to conserve cash until things turn around. What does this mean for prospective buyers? The time is ripe to buy as you can take your pick and negotiate great prices and terms. I would bet that within a year, Boquete will be back to being a bargain that it was when I began building Valle Escondido and marketing Boquete as "twice the lifestyle, half the price".
I find it rather amusing that the town has hired additional engineers to help with the expected flow of building permits and now they have nothing to do. Welcome to the world of capitalism. You never really know what the market will do in the future.
Home sales slow in Boquete
Driving through Boquete, it is hard not to notice the "for sale" signs on a large number of houses.
The fact that these signs are in English, and not Spanish, is a testament to the real estate boom that has taken place here in recent years. The fact that these signs are in English, and not Spanish, is a testament to the real estate boom that has taken place here in recent years.
But now, the global financial crisis has started to take its toll. But now, the global financial crisis has started to take its toll. José Branca, president of the newly created Chiriquí Association of Real Estate Brokers, said that sales to foreign residents has fallen “dramatically” in the last six months and, in comparison with the past seven years, activity has declined 50 percent, he estimated. Joseph Branca, president of the newly created Chiriquí Association of Real Estate Brokers, said that sales to foreign residents has fallen "dramatically" in the last six months and, in comparison with the past seven years, activity has declined 50 percent, he estimated.
At least three residential projects have stopped work altogether, and many others are moving at a very slow pace. At least three residential projects have stopped work altogether, and many others are moving at a very slow pace. Mayor Manuel Ruiz has an even more pessimistic view, saying that “90 percent of the projects have been affected.” Mayor Manuel Ruiz has an even more pessimistic view, saying that "90 percent of the projects have been affected."
The community's budget has been impacted as well, as the government has had to reduce it by 20 percent because of falling revenues. The community's budget has been impacted as well, as the government has had to reduce it by 20 percent because of falling revenues. A big part of that drop is due to a drastic decrease in fees related to construction, such as building permits. A big part of that is due to drop to sharp decrease in fees related to construction, such as building permits.
Because of the construction boom, the municipality hired three engineers to work with the head of the department to help review building plans. Because of the construction boom, the municipality hired three engineers to work with the head of the department to help review building plans. But now, because very few new plans are being brought into the municipal offices, there is little work for them to do. But now, because very few new plans are being brought into the municipal offices, there is little work for them to do.
Branca estimated that, in the last seven years, there was more than $16 million in real estate transactions in the area, and more than 300 foreign families moved to Boquete, primarily because of its cool climate and low cost of living. Branca estimated that, in the last seven years, there was more than $ 16 million in real estate transactions in the area, and more than 300 foreign families moved to Boquete, primarily because of its cool climate and low cost of living.
But the current trend in the industry is different. But the current trend in the industry is different. According to Branca, more foreigners are now renting, waiting for the financial crisis to end so that they can find financing to purchase a home or sell their property in their home country. According to Branca, more foreigners are now renting, waiting for the financial crisis to end so that they can find financing to purchase a home or sell their property in their home country.
Panama is also facing more competition in the real estate market, as countries such as Ecuador and Uruguay have begun targeting foreign investors, said real estate broker Enrique Arrocha. Panama is also facing more competition in the real estate market, as countries such as Ecuador and Uruguay have begun targeting foreign investors, said real estate broker Enrique Arrocha.
Others say that the floods of November 2008, which heavily damaged many roads and bridges, has contributed to the slow down. Others say that the floods of November 2008, which heavily damaged many roads and bridges, has contributed to the slow down. Because the government was unable to repair the damage quickly, some say that it caused foreign investors to look elsewhere for property. Because the government was unable to repair the damage quickly, some say that it caused foreign investors to look elsewhere for property.
Branca said that the people who are looking to buy are searching for less expensive properties. Branca said that the people who are looking to buy are searching for less expensive properties. In the past, he sold houses for as much as $800,000, but now most of his buyers want homes for less than $200,000. In the past, houses have sold for as much as $ 800,000, but now most of his buyers want homes for less than $ 200,000.
