| | |  Puerto Vallarta Real Estate 
Puerto Vallarta Real Estate Market Forecast
 Michael Green - tropicasa.com
November 11, 2010
| | If you are looking to buy Puerto Vallarta real estate and just found your "perfect place," you better make your offer today, because the property may not be available tomorrow. | |
We have seen a significant increase in buyer interest and sales activity this year as compared to 2009. One well established office in town reported that they have almost doubled sales this year compared to last year.
I am cautiously optimistic about the coming year; cautious because of the extremely disappointing 2009, but optimistic because of the strong recovery that has characterized 2010 so far.
Going into 2011, I see Canadian and Mexican buyers staying quite active and American buyers returning after a two year absence thanks to economic turmoil and over hyped media reports of drug violence and swine flu. The buyers that were here last year 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 "subprime 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 as rates become more competitive and qualifying and closing become more streamlined. One of our most experienced loan brokers reports that 2010 has already been his best year ever with still two months to go in the year.
The world economic turmoil has undoubtedly trimmed the nest eggs of most new buyers entering this 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 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. Existing properties that are well priced and well located are in high demand; as buyer's really like to see, feel and experience the property first hand before buying.
New developments with great location, excellent price, superb design and a proven track record from the developer are also doing well. One new south side development of 50 units is already over half sold out prior to breaking ground. But developers beware; if you only have three of the above items you are in for a battle, if you only have two, you are in real trouble, and anything less will not sell at all in this market.
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; as there are still buyer concerns and excessive inventory, 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 2011 and see how clear my "crystal ball" was.
Active in local and national Real Estate boards, published author and acknowledged expert on Puerto Vallarta Real Estate, Michael Green is the local "Agents' agent," having mentored or sold homes to dozens of them. Mike can be reached at michael(at)tropicasa.com.
 For over a decade, Wayne Franklin and his team at Tropicasa Realty have been a trusted name in Puerto Vallarta real estate. Tropicasa Realty is the region's representative for" The Leading Agents of the World" and with over 100 years of combined experience in real estate, all agents of the company are affiliated with AMPI. Wayne Franklin or any member of his knowledgeable team can be contacted in-person at their Romantic Zone Office - Pulpito 145-A at Olas Altas or in their San Marino Office - San Marino Hotel at Rodolfo Gomez 111-4. While in PV they can be reached at (322) 222-6505 or by calling 866-978-5539 (Toll-Free) from the U.S.
Click HERE to learn more about Tropicasa Realty, or visit tropicasa.com. |
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