Puerto Vallarta Real Estate
|Carl Timothy on Today's Puerto Vallarta Real Estate Market|
July 21, 2010
With the local real estate market in flux we decided to ask Banderas Bay area realty expert Carl Timothy for his take on the state of the market for Puerto Vallarta's residential real estate.
BanderasNews: It's obvious that the Puerto Vallarta real estate market has devalued like many other real estate markets. Just how bad is it?
Carl Timothy: The answer to that question it depends on the location of the property and it's condition, but we are seeing across the board decreases in value ranging from about 20% to 35%. Prime locations and areas that offer great architecture, maybe beachfront, and great design have fared better than others, but generally speaking values are relating to roughly 2004 levels.
That said, we have had sales activity on properties that are well priced for the market and even though we are in the middle of our low season we feel the demand building from our neighbors up north. As soon as they feel a little more confidence in the US economy we'll be busy again. It will probably start slowly, but remember we are a seasonal market area.
BanderasNews: We hear a lot about tough credit markets. Can buyers get home loans?
Carl Timothy: Yes, absolutely. Some lenders can have our US clients completely qualified within a week and close in 45 days, which is a normal closing period. There are loans available for Property Acquisition, Cash Out on a property already owned, and Land Acquisition loans. They will loan up to 75% on a new property purchase and up to 50% for a Cash Out. Rates are reasonable for this market and the lenders are working hard to get these loans.
BanderasNews: Is this a good time to buy or sell?
Carl Timothy: For buyers there are some incredible opportunities right now. Prices are at 6 or 7 year lows. For example houses that were $2,000,000 USD last year can be purchased for $1,000,000 now. Condominiums that were priced at $800,000 last year might be purchased for $600,000 now. It can also be a good time to sell your home. We have homeowners with their homes on the market to take advantage of some of the opportunities to move up in the market.
BanderasNews: It appears that homes are on the market for longer periods of time these days.
Carl Timothy: Today the average period of time to sell a home is much longer than it was 2 years ago but what can help is an experienced agent's representation. During the last "Zoom" market houses and condominiums almost sold themselves; everyone and their aunt became a real estate agent. Today it takes a professional with a thoughtful marketing and sales strategy. Central to this plan is pricing. An agent that is working with an AMPI member office that has experience, ethics, and knowledge of the market can help seller's price their properties for the market.
BanderasNews: What kind of properties are selling best?
Carl Timothy: These days buyers are more discriminating than ever. Since homes aren't appreciating at 20% a year any longer buyers don't feel a rush to buy. To get them into the game the property needs to be either a bargain or that elusive "magical" or "special" home. The Timothy Real Estate Group's passion is selling great properties and we have built our reputation on representing some of the best developments and properties in the bay. We are reminded of this by the number of agents and buyers that visit our listings because they feel they are worth seeing and know that we work with other agencies as teammates to help the buyer find the right property for their new home.
Carl Timothy is the founder of Timothy Real Estate Group, an independent real estate brokerage firm specializing in some of the finest properties available in Puerto Vallarta and around Banderas Bay.
Timothy Real Estate Group is a full-service real estate sales, rentals and development agency representing some of the most distinguished properties and developments across Puerto Vallarta, Bahía de Banderas and the Riviera Nayarit. For more information, visit TimothyRealEstateGroup.com.
Click HERE to learn more about Timothy Real Estate Group