One of the most common real estate misconceptions have is that buying during a high point in the market is better; buyer’s confidence, increased sales and market optimism make buyers feel comfortable and optimistic themselves.
Yet, there is a very obvious point here that too many people miss; when the market is high, so are prices. When the market is low, prices tend to be as well.
While this is a fairly universal point, it has some specific implications for Mexico real estate.
Some Excellent Markets to Choose From
Some of Mexico’s main expat communities have had their high points and slow points over the past few years. While I would have to confirm current situations, right after the recession several years back, both Puerto Vallarta and Rocky Point had a glut of condos on the market that had been built for a booming sales market that suddenly dropped off. This gave buyers some excellent opportunities to pick up beautiful condos in the best locations for considerably lower prices than usual. (You can check out the current opportunities in these two communities here and here.)
There is also San Miguel de Allende, the colonial town in central Mexico with a huge expat community; it has currently slowed, but experts feel it will take off again.
Mexico Offers More Stability 
In the United States there are slow markets that are best avoided. For example, in some relatively undesireable locations in Florida, you may find a condo for $40,000, but if you buy it, it’s yours for life. The likelihood of finding a buyer to resell is very low.
While it’s worth choosing markets with more exposure and more amenities to appeal for resale, Mexico in general fluctuates less, and at the same time it’s unlikely you’d ever be stuck with a property without possibility of resale. This also means that low points you find here won’t be as low as those back in the U.S., but they are there.
A Low Seasons Work Similarly
If you wait for an economic crisis so you can grab up cheap properties, besides the fact that you could be waiting for a long time, it simply seems like a rather unwholesome thing to wait and hope for! The good news is that Mexico’s tourist areas have a similar, smaller-scale phenomenon every year – the tourism low seasons.
During the summer or very rainy tropical storm seasons, not only do tourists snub travels to Mexico’s beaches, but most buyers will also hold off until the crowds arrive in winter and Spring Break.
If you start your property search during low season, you can have a better pick of Mexico properties, take more time to search and decide (without worrying that someone else will snatch up that perfect home) and often even negotiate a better price or some little extras.
High Market May Be the Way to Go – IF …
If you have found the property you love for the right price, don’t sit around thinking about whether the market is low or high – go for it! Especially if your goal is simply to enjoy life on the beach. Also, even from an investor’s point of view, high, moving markets might offer better rental potential. There are many factors to consider.
However, the point is that you shouldn’t be turned off by the fact that a market is slow – at least not in most of Mexico – and if you happen to be shopping for your dream home during a low season in a slow market, you could use this to your advantage!
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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.
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