Why the Average “Days on Market” for Homes is 32 Months

I just returned from the Coldwell Banker Global Conference (GenBlue) in Universal City CA where I met dozens of brokers from around the globe. For the sake of this post, I will focus on my conversations I had with those in the USA.

In California, the average home is on the market for less than 90 days. Florida is close to 75 days. New York is about the same. Dallas or Houston is hovering near 75 days.

The deer-in-the-headlight facial contortion happened when I was asked about our market-indicator data point. “So John, how long are homes (not land) taking to sell in Costa Rica?”

32 Months! (That is correct. Months. Not Days).

2.66 Years!

138 Weeks!

968 Days…. Please don’t correct my math…I am on a roll…

“Um, so, how do you make a living down there selling real estate?” We will save that answer for another time.

Costa Rica is a secondary – perhaps tertiary – market. With only 4+ Million people (the size of Orange County CA), it is not a primary economic market. Come to the coast, where the majority of foreigners invest or live and there is very little real economy.

This is lifestyle! People buy homes here to enjoy a certain lifestyle that is hard to explain as it is something you must experience. Yet, even with lengthy days on the market, construction is extremely robust. Just in my area of Costa Ballena, we see over 60 homes under construction. I anticipate seeing high quality inventory hitting our market in 2015.

32 months is an alarming number when sharing with sellers as we take their listings but bodes well for potential buyers as their remains stress for sellers to realistically price their product.

For you, my prospective customer, this is an interesting opportunity to consider. Every time I share this data with you in my car, your response is that the seller must be desperate, distressed or that something is significantly wrong with the home. Not at all.

Don’t be alarmed by the length of time it takes to sell inventory in Costa Rica. Remember, we don’t do Sat/Sun open houses or have listing magazines in every grocery store, newspaper and dental office. Our clientele is looking at homes while on vacation in between their zip line tour and scuba diving. So yes, selling a home is going to take longer than in the US. It just is what it is.

Things are progressively getting better, supply (the lesser quality inventory) is dwindling, new construction is on the rise and demand is back.

I predict my data point – Time on the Market – will show 24 Months within one year and a continued downward trend. By that time, prices will have begun to creep back up. Based on these statistics, managing your patience is critical as the boat may have left the dock.

Now is the time to be purchasing!

John Wieland

John Wieland

John currently believes that this is the best time in history to being a buyer in Costa Rica. He studies global markets and the flow of funds meticulously and is seeing an upswing. He is currently working with Haute Living Magazine to promote a higher quality of luxury homes to discerning clientele throughout the US. He is rigorous in his pursuit to expand such marketing efforts and visits prominent markets like Los Angeles, Miami, New York and more to build upon his network of affluent brokers. As the President of Coldwell Banker Costa Rica’s nine offices, his #1 Priority for his franchisees’ is training. With an ever-changing industry, he carefully reviews the performance of each office and is committed to helping each succeed. He is committed to growing the brand in Costa Rica from nine offices by implementing systems and a useful business tools that brings all the offices together. A visionary and consummate professional, John saw the benefit of starting an alliance amongst other brokerages and in 2008, spearheaded Southern Pacific Alliance of Realtors (SPAR). Although this may be his most challenging work, the sustainability of this business model has already proven to be a tremendous success and benefit for the area brokers. He has built networks spanning multiple countries and is committed to providing the highest level of client service. John, a self-proclaimed wine snob, currently resides in Playa Uvita where he often chooses wine from his hidden stash while his wife prepares something fantastic to pair with it. They continue to travel and visited Spain and Germany and also enjoyed a trip to visit family in California & Arizona. He has purchased a couple properties this year and has plans to build their family home next year in Ballena. An avid golfer, he was able to tick off Torrey Pines in San Diego and PGA Championship in Palm Beach from his bucket list. He is currently reading such books like “The One Thing”, “Business Adventures”, “Tomorrow’s Gold” and “The Clipper Ship Strategy” while also finding time to play the guitar for his wife and daughter.” Keep an eye for his new love of writing on his blog and other various industry platforms.