Prophetic words? Say “ADIOS” to virtual inventory

Prior counsel now especially apparent in the light of the global financial crisis

In February 2008, I wrote in Mexidata.info an article analyzing the Baja phenomenon of what I called “virtual real estate inventory.” I defined this as real estate that existed only in builders’ minds and within the miniature models in their sales centers and trailers. My recommendation to buyers was to focus on real estate for which they could immediately take title. I recommended land, bricks, sticks, and cement over the tempting vision of what has been called “two guys with a cell phone.”

With today’s economic crisis now obvious to everyone, that important recommendation has become prophetic. Even some of the most notable names in Baja real estate have been affected by this global economic crunch. Why risk your hard earned money towards an “idea” when you can buy and possess your dream home now?

There is a silver lining for the market in general and to buyers and home sellers in particular. The disappearance of projects and their excess inventory means a consolidation of the real estate activity towards existing brick-and-mortar properties. The speculator investors are largely gone and a new level of moderate business can build for people that actually want to live in and enjoy their coastal Baja homes. Many sellers have adjusted their prices downwards to a much more tempered economy and buyers are looking for value and quality-of-life over speculative investment returns.

When you are looking for your dream home, I invite you to find one that is complete from the ample inventory available on the Baja MLS. Remember, never exchange a penny until you are guaranteed of your property rights to your dream home.

Trust your property transaction to FLOCK DREAM HOMES.