Active Rain, the leading world-wide social network for real estate professionals, has released an infographic showing the confidence of real estate experts from the U.S. on that country’s housing market for 2013.
On the whole, the numbers look good and it looks like confidence is up significantly from last year. This is also good news for anyone planning on buying Mexico real estate.
Highlights from the infographic:
- 84% of those surveyed felt that values would increase during 2013 – that’s up 133% from 2012
- 74% believe that the local economy will improve
Assuming that these professionals are at least somewhat right, this is excellent news for U.S. housing.
Easier to Buy in Mexico
It also means that Americans who wish to buy a property in Mexico will have an easier time of it.
Rising values means that owners will have a greater amount of equity on their current home. This will make it easier to gain a loan against that property. Improved local economy may also have the effect of making banks more confident to approve loans.
Since the majority of Americans who buy in Mexico fund their purchase in this way, it will make it easier for many Americans to pursue their dream.
Buy Now or Buy Later?
Americans who currently have the means to buy their dream property in Mexico will probably do well to “get ahead of the game” and buy soon. This may make the difference of finding that extra $25,000 price reduction or just having a better pick of the crop.
On the other hand, those who are not yet sure about the situation with their equity may wish to hold off until we see this year’s growing confidence play out in reality.
There will likely be more people doing the same. This could mean that a buyer will miss out on that extra discount, but, since Mexico’s price are consistently lower, he will still be getting the home of his dreams 5 minutes from one of the world’s most beautiful beaches for $150,000 USD. The cost of living, taxes, etc. are also very low, and this factor always remains attractive.
Buyers in this situation may wish to start shopping around – get a feel for what’s out there.
Bad News for Canada?
The infographic presents an outlook for Canada that appears, at a first glance, more pessimistic. The menacing hand about to pop the “Canada bubble” re-enforces the appearance of negativity, although none of the stats suggest anything like a burst. Let’s take a look:
The experts predict a “flat” market. Sales and values are soaring high right now – as another part of the graphic indicates. This simply means values will remain high, as they currently are, without going up further.
Consumer debt is rising, but this is an individual situation; any home owner in Canada who has their debt under control will still have a very high valued home against which they can take a loan and buy their dream home in Mexico. As it as been for the past few years, Canadian home prices dwarf even spectacular properties in Mexico. This is especially true of retirees who may be selling their home in order to make the move permanent.
The ongoing strength of the Canadian dollar against the peso also continues to be very attractive.
On the whole, it looks like for 2013 at least, Canadians will still be able to buy real estate in Mexico.
Conclusion – 2013 Should Be a Good Year …
2013 looks like it will be a good year for Americans and Canadians pursuing that dream of owning a home in Mexico!
All images in this post are portions of the infographic from Active Rain. Click here to see the entire infographic.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 16 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the president of Top Mexico Real Estate. Contact him at (512) 879-6546.
The TOP Mexico Real Estate Network; “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”