It’s a real mixed bag down there, but most of the bag is not so good. As pointed out above, there are lots of half-completed and half-occupied complexes. But there are also plenty of fully-occupied projects as well, but you do have to be very careful.
Generally, prices have come down about 40%-50% in most places. But there haven’t been many actual foreclosures because most folks put down at least 30% when they bought – because that’s what was required when getting financed down there – and there were a lot of all-cash buyers. The typical buyer took out a $100K line against their house in California or Arizona and used it for a down payment on a $275K condo… and then defaulted on the line against the house but hung onto the condo.
Part of the problem, of course, with knowing exactly what’s going on down in Baja is that there’s no official MLS and the public records aren’t digitalized or readily available. Also, it’s very complicated to foreclose on a home in Mexico. So, it’s not easy to know exactly what’s going on down there.
My advice – worth exactly what you’re paying for it – is only buy if (1) you plan on owning it for at least 15 years, and (2) you’re in a mostly full complex (for HOA reasons). I don’t see much price appreciation down there for many years – Baja got way way overbuilt.
