Decline in U.S. housing sales
is not welcome news here


Housing sales in the United States dropped sharply in July, hitting their lowest level in 15 years. The decline is certain to be felt in Costa Rica where many would-be expats are trying to sell their Stateside home.

Tuesday's report from a business group, the National Association of Realtors, says the number of previously owned homes sold fell more than 27 percent from the previous month.

Real estate in Costa Rica continues to suffer from the stale U.S. market. In the past, newly arriving expats used the proceeds from their home sale to purchase property here and adopt their new lifestyle.

More frequently now expat discussion lists are receiving inquires from North Americans without much money who hope to move to Costa Rica to take advantage of the lower cost of living and the nearly free medical case.

While U.S. sales were down, the average price for a home increased slightly over the same period one year ago. That seems to be the case in Costa Rica where owners have declined to adjust their price downward. Consequently sales are fewer. The bulk of the bargain hunting is by monied interests who are seeking large tracts for future development.

Economists watch the U.S. housing market closely because severe problems in this sector helped start the recent economic crisis.

Several economic reports are scheduled for publication later this week. Economists surveyed by the Bloomberg financial news service predict that measures of future factory activity and the job market will improve, while a separate gauge will show the overall economy growing more slowly.

The country's economic performance and the unemployment rate will be a key issue in congressional elections in November.

Tuesday the top Republican in the House of Representatives called for President Barack Obama's entire economic team to resign. Rep. John Boehner said during a speech in the midwestern U.S. city of Cleveland, Ohio, that the country needs a new approach to its economic problems.

Government rejects claims
that a new Moín is costly


The central government counterattacked Tuesday and rejected the notion that fees at a new Moín port facility would be disproportionate. In fact, said the transport minister, the rates would be 300 percent lower.

A unified front of opposition parties Monday asked the government to cancel a plan to award a concession to a private firm to handle the docks. The facility now is run by a government agency, but Costa Rica does not have the funds needed to modernize the docks.

Lawmakers were from Acción Ciudadana, Movimiento Libertario, Unidad Social Cristiana, Accesibilidad sin Exclusión  and Frente Amplio. Some of the opposition parties, like Acción Ciudadana, have opposed the general concept, but others, like Movimiento Libertario, supported it.

The opposition parties said the concession offer was pushed through and lacked transparency, the projections of exports were disproportionate, the proposed rates were based on exaggerated estimates and that the port would become one of the most expensive in Latin America.

Francisco Jiménez, minister de Obras Públicas y Transportes, rejected that argument in a release. His ministry also released a detailed chronology of the steps leading to the request for bids by a concession holder.

Meanwhile, the Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado urged the government to move forward quickly on the plan. The chamber had been named as one of the business groups concerned about the future rates.

Costa Rica is rated 128 out of 133 countries for its port infrastructure, said the chamber. The average cost of importing and exporting a container is $1,190 while in Panamá the cost is $804, the chamber said.

Jiménez in his release said that Moín was the most expensive port for shippers in Latin America and that there are frequent delays. He argued that legislators should not compare today's rates with the rates of a new and modern port.

The lawmakers seemed to be setting the stage for a court battle over the concessions, which are supposed to be sought soon. Jiménez, in the release, said the concession proposal had gone through all the necessary administrative agencies for review.

Seven traffic officers face
weigh station bribery count


Seven traffic officers who work at the Cartago weigh station  have been detained and suspended on allegations that they took bribes from truckers with overweight vehicles.

They are members of the Policía de Tránsito, which is part of the Ministerio de Obras Públicas y Transporte, said Judicial Investigating Organization agents.

The weight station is in Ochomogo on the Autopista Florencio del Castillo. The investigation has been under way since last year, agents said.

The Poder Judicial identified the seven by the last names of  Chávez Mejía, Solano Quirós, Perez Trejos, Ordoñez Montaño, Méndez Rivera and Brenes Aguilar.