Home sales have fallen by up to 70% in the state capital, Culiacan, and the rest of Sinaloa, according to data from Canadevi (National Housing Agency).
Housing developers have reduced the prices of their homes by up to 500,000 pesos, primarily in the residential segment with values above 4 million pesos, due to a sharp decline in their activity for almost a year, largely attributed to the wave of violence.
According to Daniel Félix Terán, the president of the National Housing Chamber (Canadevi) in Sinaloa, this measure was implemented by some developers to revive the market in the face of the difficulties facing the real estate sector in the city.
The strategy, said the businessman, focuses on higher-value properties to attract buyers to a market facing challenges due to insecurity and banks’ caution in granting mortgage loans.
“When you have a bridge loan that’s costing you interest, having a finished home sitting there is a very high financial cost. So, now that the situation in Culiacán has slowed home sales, developers have opted to get rid of that inventory and sell the property to avoid that financial cost. They’ve been putting up promotions. But that doesn’t mean the property has dropped in price. Some developers put up a down payment of up to 500,000 pesos, but it’s residential housing that’s worth over 4 million, 4.5 million, 5 million,” he said.
Real Estate Sales fall by 70% in Sinaloa
The president of Canadevi reported that the drop in sales for housing developers has reached up to 70%; that is, of every 10 homes that were sold, only three are currently being sold.
Félix Terán pointed out that the situation has led to only apartments and houses between 1 and 1.5 million pesos, maintaining some demand, while the rest of the market remains stagnant.
Banks Distrust Sinaloa
The impact is also reflected in the financial sector, said the housing developer, as banks, with a “red flag” on Sinaloa, have tightened mortgage loan requirements, seeking to avoid an increase in their non-performing loans, which has further complicated access to financing for buyers.
Source: Luz Noticias
