Puerto Vallarta, Mexico - Like everywhere in the world, Puerto Vallarta is very quiet. Shortly after the WHO characterized the coronavirus outbreak as a pandemic, the tourist season was preemptively cut short, and many snowbirds and expats left the city faster than ice thaws in a margarita.
This got us wondering about all of the people who have decided to, or have been thinking about, buying property here, so we asked Ron Morgan of Ron Morgan Properties to give us the scoop.
Ron has owned and operated a real estate office in Puerto Vallarta for nearly 20 years. Embedded in the community, he has withstood the test of time. Despite the fluctuations of the real estate market, he still considers property "the ultimate souvenir," so who better to ask about the state of real estate in Puerto Vallarta during the Coronavirus crisis?
Banderas News: How has the outbreak impacted your buyers and sellers in contract?
Ron Morgan: We've had more clients who will not be able to physically attend closings due to border closings or flight restrictions. This is remedied by utilizing a Power of Attorney. This is not unusual and I've attended many closings in the past where Buyer and/or Seller have been absent.
BN: How do you see this affecting buyers?
RM: Like any market, including the stock market, real estate will level off and there will be an influx of inventory and an influx of people looking to buy property in Banderas Bay. This is enhanced by the fact that we presently have an exchange of 25 pesos to the dollar, increasing a buyer's position dramatically. This also gives buyers on a budget the opportunity to find the right property at the right price.
BN: How will this affect sellers?
RM: They will have more shoppers to view their properties than they have had in the recent past. There has been a dramatic increase in inquiries. We're also seeing sellers accommodating their peso buyers by freezing the exchange rate. Capital gains will continue to fluctuate as the price of real estate and exchange rates fluctuate.
BN: Overall, how do you see this affecting the real estate market in Puerto Vallarta?
RM: The advantages of owning real estate in Puerto Vallarta will stay consistent, i.e. low property taxes, low utility bills, low maintenance, and affordable labor, which will become more plentiful as the hotel market declines and hotel vacancies rise. As of today hotel occupancy is down 15%. Residents have been living in a dollar economy yet paying their bills in pesos. That's a huge advantage and a lifestyle that many will not want to give up.
As it pertains to Ron Morgan Properties, I've reminded my agents that all clients, on every level, are of the utmost importance to us, and it is essential to consistently stay in communication. We will utilize technology and digital marketing more than ever. We've been expanding our virtual tours and social media presence. We're implementing virtual open houses and drone footage to enhance our digital marketing strategy.
BN: Do you see this affecting tourism in Puerto Vallarta?
RM: Briefly. There are many things that set us apart. Puerto Vallarta is a beloved jewel. The people who live here, live here by choice. It's a community formed of many like-minded individuals. That's what brought them here and that's what keeps them coming back. I'm witnessing incredible acts of kindness and charitable deployment. I am fortunate to be part of this community.
For more information about investing in Puerto Vallarta real estate, contact Ron Morgan Properties, or visit RonMorgan.net.