Puerto Vallarta, Mexico - The real estate market in the Bay of Banderas to include Puerto Vallarta, Nuevo Vallarta, Bucerias and points beyond, have experienced a significant increase in market activity and sales this year over last.
While house sales dropped from $34.5M in sales last year to $28M in sales this year, an 18% reduction, condo sales soared from $37M in sales to $61M, a 64% increase, netting an overall 24% increase in both condo & home sales. My personal sales this year have doubled from last year.
Buyers in all strata have a renewed interest in buying and a sense of urgency seems to be creeping back to the marketplace. Part of that is that some of the "best deals" are either gone or seemingly on their way out, and thus, the market seems to be turning a corner toward the better. In addition, new construction has seen a resurgence and buyers are much more confident to venture into preconstruction projects again. That said, pricing and location are critical - not just any new development will have success.
As a result, there is increased inventory on the market, which we hope will only keep pace with the interest and not outpace it for the risk of flooding the market with inventory and having the undesirable effect of overpowering the market again and seeing softer prices. So far, that has not happened and numerous sellers have been able to stand firm on their pricing or at least have stronger negotiating positions. Overall, sales prices still seem to hover between 5-10% off the asking price.
The average sales price of condos has also increased from about $283,000 USD last year to $321,000 this year. That is a significant increase if you consider that the $500,000 to $800,000 market has been dead for years, and this year saw a significant increase in that market, both in houses as well as in condos. Yet the overall numbers for average sales price of a home decreased from $565,000 to just under $510,000. Houses have no doubt seen the biggest hit in this market, but now it seems that buyers feel that it is a good time to trade up or buy into that home that they could not afford before.Wayne Franklin is the owner/broker of Tropicasa Realty, established in 1997. If you want to know more about living in Paradise, or would like to speak to Franklin directly about buying or selling a home or condo in Puerto Vallarta, you can contact him at franklin(at)tropicasa.com, or by calling his office at (322) 222-6505.
Since 1997, 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.