Playa del Carmen real estate has been constant in its growth throughout the last quarter of 2007. As I speak with other realtors in the area, the overall opinion is that although the quantity of American Buyers has declined somewhat, the Canadian rush to Playa del Carmen and Tulum continues to surge.
There has been much attention focused on the US sub prime obstacles, and much concern on how this would affect the demand here in the Playacar real estate, the Puerto Morelos real estate, Puerto Aventuras real estate and of course the Playa del Carmen real estate market. I believe that many of us realtors are still waiting for the spring season to progress further before formalizing our opinions. By this time, hopefully by the second half of the year, recovery as predicted by various economists from the US, of the housing market should be at the initial stages and consumer confidence back in a bearish mood.
Franklin Allen a Wharton professor, states thatthe severity of the situation depends on which geographical regions are hit the hardest This is what many real estate analysts remind us in their reports and articles. Real Estate is a commodity that is not a nationally tracked commodity. What occurs in one region differs than results of another region, as are states and as are cities. Some states are affected to a greater extent than others such as California and the Florida markets each with various cities having a correction in prices that should level off by the spring of this year.
Again, how does this all affect Mexico real estate and the Playa del Carmen real estate or does this affect us at all Yes, I expect it will have some decreases in the quantity of American buyers for the next couple of months. Buyers coming from the southern regions may decrease, but I also am seeing a strong quantity of interests from the Midwest upper regions, from Colorado, and New York New Jersey. I also have seen other factors that have increased the demand in other countries of the world in particular Canada and UK. With the decreasing exchange rate of the dollar, the pound and Canadian dollar have given much more strength to investors from these regions here in Playa del Carmen.
Last week, our office was battling to reserve a beautiful preconstruction condo in downtown Playa del Carmen off of the beach for over $500,000 usd. Our buyer was from New York, the other buyer from UK. Business as usual as the rush to invest in Playa del Carmen real estate continues, in January at least.
10 January, 2008
Thomas Lloyd
