The downturn in the U.S. has had a positive effect on Costa Rica’s housing market. Retirement homes are more inexpensive as a result. During the international crisis of 2008-2009 home prices in some areas fell as much as fifty percent. According to Costa Rica’s financial newspaper, La Republica and the Costa Rica Chamber of Realtors prices this year will not be any different than they were in 2010. This is a great opportunity for retirees and others since real estate prices are not expected to increase in the short term. So, if you are planning a long term investment now is the time to buy something in this “buyers market.” The local real market is good with local rather international buyers keeping things afloat. There is now abundant financing for Costa Ricans so they are purchasing homes. Interest rates are very favorable for the local market, too. Interest rates in dollars were 9.3 percent in 2010. They are now around eight percent. The good news is that some projects are beginning to offer financing through Costa Rican banks for foreigners. One company I know of has gated communities in San Francisco de Heredia and San Joaquín de Heredia. Prices are around $200,000 but you won’t find anything better in the Central Valley. The detached homes are well built, are two stories and have three bedrooms and two and one half baths. Also many gringos who overextended themselves financially are willing to do owner financing just to get rid of their properties. According to La Republica newspaper, some of the best buys at this time are found along the Pacific Coast of Costa Rica where prices fell as much as 50 percent due to the crisis. Retirees and investors can find some excellent bargains in that area if they do their homework. Down the rod they are bound to make a nice profit.