Sales in Northern Baja Picking up
in Coastal areas, Rosarito and Ensenada, see Mexicans and
Americans picking up bargains
In the middle of 2009,
Northern Baja real estate was at a standstill, nothing was selling; no one was
here, hotels where at fewer than 20% occupancy. Rosarito Beach and Ensenada
hotels are expecting to finish this summer with over 60% occupancy.
Now, in the middle
of 2011, hoteliers, developers and realtors are optimistic.
The average sales per
month in the first quarter of 2011 stood at fifteen, with an average price of $
205,000 dollars vs. 1 sale per month in the same period a year before, says RE/MAX’
s Blanca Guerrero, one of Baja’s most
In the second quarter
we see this number increasing to 20 sales and just a bit higher on the
However, third quarter
of 2011 is seeing more activity and many more Americans and Baja California residents
investing in the area.
Thus, the average
estimated sales per month on the third quarter are estimated at 25 per month;
likewise, buyers are moving a little bit up representing a $ 215,000 average
Just like in Southern California, where according to the
National Association of Realtors, San Diego’s homes sales price average
increased 21% from its low, reached in March of 2009 ($327,000 and now stands
at $398,000), here in northern Baja California, oceanfront prices have
also increased just about 15% from their lows.
San Diego’s peak was in May 2006 at $622,000 and northern
Baja was in early 2007 at $ 329,000, and now stands at $ 205,000. It went down
as low as $180,000 in early 2009. Of course, if we compare oceanfront prices in San Diego,
the average there is $1.8 million!
40% of buyers are from southern California, Nevada
and Arizona and they are between 40 and 65 years of age, and are looking for: future
retirement (35%), investment (25%), second home (30%), and a few other
As a big surprise, we
see that over 60% of buyers are from state residents. Northern Baja California
residents are taking advantage of great value in the area and are snatching up
oceanfront and ocean view property all over. (Take a look at one of our
We are seeing not a
sense of urgency as much, but mostly a realization of the great price and value
opportunity, says Ms. Guerrero. As an example, an oceanfront luxury
condominium, 2bed/2bath with approximately 1,400 sq ft that was selling for $280,000
three years ago; same unit was selling in the $180k’s to 190k’s 12 and 6 months
ago, and is now selling for around $220,000 dollars… still at a fraction of an
identical property just north of the border… and still low in comparison of the
high of 2005 here in Baja California. Many are looking for
-and finding- amazing opportunities.
Prices dropped an average
of 33% from the high of 2006, says Ms. Guerrero, However, since the bottom -which
was hit on the first quarter of 2009, prices have increased around 20%, says Victor
Loza, Baja real estate agent, and now sales director of the Rancho del
Mar Lots and Homes;
Many Americans love
living in northern Baja, for many reasons, but the main ones are comprised of
closeness to the US border, top of the line medical services and hospitals, low
cost of living, friendly and helpful neighbors.
Property taxes run an
average of $200.00 dollars per year, while a similar property in California
would be around $ 5,000 dls.
Baby Boomers are
retiring in record numbers and are looking into Mexico to retire, mostly to enjoy a
great lifestyle but still be close to the border.
Our buyers are very analytical,
says Mrs. Guerrero. They do their homework before they come and buy or invest
In previous years,
people just came down and snatched properties left and right, without looking
at paperwork, bank trust information, title insurance, closing costs, etc.
Now buyers are informed
and agents’ and developers’ responsibility is to inform them even more and
disclose all that is pertinent to the sale.
If 2011 is looking very
good, we can expect a great 2012 and a superb 2013 and beyond.
We have new developers
coming into the area and some that where here before, are restarting their
like “La Jolla del Mar” in northern Rosarito have completed construction.
Other Mexican and world
destinations only dream to be as close to California and the US as Baja