NEW YORK (CNNMoney.com) — The trend of Americans buying homes and expatriating to Mexico has collapsed, done-in by a trifecta of the recession, swine flu and an epic crime wave. But there is opportunity !!!
Sales volume plunged nearly 70% last year for Coldwell Banker, according Phillip Hendrix, director of the firm’s Mexican operations. And at Costa Baja, a residential resort development a few miles north of La Paz, sales dropped by about 40% in the past 12 months. “Sales are off like crazy. The recession is really hurting and the headlines have been driving people away. The narco-wars especially have bit into the housing market in Mexico,” said Tom Kelly, a follower of Mexican real estate trends and author of Cashing In on a Second Home in Mexico.
It’s good news for Americans who have always dreamed of retiring to Mexico but could never afford it: The bust has made homebuying a steal. Prices are less than half of what an equivalent home would run in the U.S.
Although the crime wave is confined to a limited area, the perception of it has hurt markets all over the nation, said Alejandro Yberri, CEO of Costa Baja.