We have seen a dramatic increase in the Puerto Vallarta real estate traffic and interest over the last few weeks. One well established office in town reported that they have more transactions in process right now than they had for the entire summer. Comments from fellow agents range from “better than earlier in the year” to “really busy”, to “going crazy!” Many observers have termed the previous year a “buyers market” in most of the Mexico real estate region.
I do not subscribe to this assessment; I believe it should more correctly have been considered a “stagnant market”. This is because many potential buyers were scared off by worldwide economic turmoil and over hyped media reports of drug violence and swine flu. The buyers that were here made extremely low offers that sellers were not willing to accept. Recently, it appears that buyers have begun to realize that the Real Estate market in Puerto Vallarta is strong, stable and offering excellent bargains for retirement and mid to long term investing. The vast majority of sellers here paid cash for their property and are not in a panic to sell. There was never “sub-prime lending” here in PV and consequently there is no mortgage crisis or foreclosure market here. With $USD financing now readily available (typically with a down payment of 25-30%) a vast new market is poised to emerge. The world economic turmoil has undoubtedly trimmed the nest eggs of most new buyers entering the market. Therefore, I see a “return to affordability” as one of the primary drivers of the market next year. Properties priced from $150k to $300k are right in the sweet spot for most buyers and this market will be active. The $300k to $600k market has also seen a lot of increased activity, especially with $USD financing now available. Luxury Puerto Vallarta properties priced over $1 million USD have never been a large percentage of the overall market; however we are seeing more showings and interest in these properties as well and expect numerous sales of well priced properties in this market as well. In summary, I see a fairly strong market recovery over the next year. It will not be a straight line upwards, or be the frenzy that epitomized 2006 and 2007, but it will be strong and it will be stable. I believe that the market hit bottom in late spring/summer 2009 and anyone who purchased a property at this time should be commended for their guts and market timing. This is not to say that there are still not good deals available in the market. There are. And there are sellers who still willing to negotiate on terms and price. However I definitely see the tide turning, so if you are buyer and just found your “perfect place”, you better make your offer today, because the property may not be available tomorrow. We will check back in May 2010 and see how clear my “crystal ball” was.
Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”
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