Puerto Vallarta, Mexico - Two of the most common questions people ask regarding Puerto Vallarta real estate are "how is the marketplace?" and "when is a good time to buy?" In this edition of 'Ask a Realtor,' Boardwalk Realty Broker Michael Green answers these questions.

Q: What is your market forecast this year? - Betty K, Sacramento

A: We are seeing a tremendous increase in buyer interest and confidence. This fall/winter has been quite busy for us with a surprising amount of buyers in town. Our office has already made significantly more sales this year as we did all of last year; in fact, have just hired two new agents to help with the increased demand. Our website traffic has doubled from what it was at this time last year.

Our local MLS reports that real estate sales were up almost 30% from 2013 to 2014 and prices are up almost 12%. Most importantly, American buyers have returned in full force and are snapping up some great deals. Our friends from up north in Canada are also quite active and once the snow starts flying, they will too! Mexican nationals are also feeling confident with their new president and strong economy.

I expect our mix of buyers to be approximately 60% American, 20% Canadian, 15% Mexican national and the remainder from elsewhere. Properties priced from $150k to $250k will be right in the sweet spot for most buyers and this market will be extremely active. Upper end properties are also coming back as many of these properties have been reduced 25-30% in price from the market peak in 2008.

Existing properties that were well priced and well located were in high demand; as buyer's really like to see, feel and experience the property first hand before buying. Luxury properties priced over $1 million USD have never been a large percentage of the overall market; however we expect numerous sales in this sector as motivated sellers have reduced prices to levels that'll be irresistible to sophisticated & savvy buyers.

The area of downtown south will remain very popular as many buyers love the walkability of this vibrant neighborhood. The hotel zone is also attracting a lot of attention with the new upscale mall "La Isla" going in at Grand Venetian and some fabulous new restaurants and nightclub opening right across the street.

The government's huge investment in infrastructure with improved roads, sidewalks and bike lanes, second bypass tunnel, beautification of "Restaurant Row, new Malecón boardwalk and Los Muertos pier is now paying off in attracting more new and upscale buyers to our market. This season it appeared that buyers began 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.

There was never "subprime lending" here in PV, and consequently there is no mortgage crisis or foreclosure market here. And property taxes that are a fraction of what they are in the US or Canada helps keep carrying costs low. Our friends that specialize in rental and property management report that it's getting very difficult to book vacation rentals as most of the prime properties are fully booked through the entire winter and spring seasons.

The natural beauty that surrounds us and the resilience of the local residents is truly inspiring. We have made it through the doldrums and are now poised to see inventories reduced, prices start to climb and the market switch from a very strong "buyers" market to a more neutral and in some higher demand areas a "sellers" market. Multiple offers have been presented on two of our properties in just the last month, this is always a strong signal to sellers that they may be able to raise their prices and for buyers to act before prices go up.

Do you have a question about Real Estate in Puerto Vallarta? Just ask!