Tropicasa reports that the real estate season has already begun. In fact, it could be said that it started in August, as this was one of the “best on record”, according to President, Wayne Franklin. “While September was traditionally slow, both August and October have turned out to be banner months for us.” “We’re seeing movement in all price ranges and types of property and the clientele is mixed with Canadians, Mexicans, Americans and even some Europeans.”
This bodes well for a market that has suffered somewhat from the economic difficulties in the States, and the constant battering that Mexico has endured from the American media. While Mexico is certainly not without its trials and tribulations, the financial and social issues facing the U.S. are no less frightening, especially given the random shootings in schools, theatres, shopping centers, and the list goes on. It would seem that the marketing from the government of Mexico to the foreign markets is paying off, as well as the repeat visitors to Mexico returning home and telling their friends that crime is no worse and often times safer in regions such as Puerto Vallarta as they may incur at home.
Buyers are taking advantage of what was commonly known as a “Buyer’s Market” in Puerto Vallarta for a couple years now. Even though there were many value-priced properties on the market due to financial stresses of the owners or simply a need to make necessary life changes at a difficult time, many of the undervalued properties seem to now be stabilizing. Multiple offers and even full-price sales are not uncommon right now. Keep in mind that Mexico was not hit with the same type of financial issues as the U.S. since more than 90% of all real estate owned is held free and clear, with no debt. Therefore, sellers didn’t have the monthly burden of mortgage payments eating at them and forcing them to make drastic decisions. In addition, property taxes are extremely reasonable in Mexico. While frustrating for the average buyer, once the public understood that the market here was more stable as a result of the conservative financial nature of the society, they feel more confident in their purchases in that there money is more secure. “Many clients over the past two years have told me that had they not purchased a property in Mexico and had that asset to sell if and when the time came, they would have been financially ruined due to the collapse in the States”, says Wayne Franklin. “Mexico turned out to be their saving grace!”
With new infill developments scattered throughout Old Town and developers either finishing their current inventory or beginning to open new phases, there seems to be a new revival occurring in the marketplace. While there’s still plenty of inventory to be purchased, developers have a confidence that the market is rebounding significantly to justify these investments. This bears out in the rapid sales of these new developments and the healthy pricing models.
Given that the 2012-2013 “high season” didn’t really start until January of 2013, the fact that buyers are returning to the market as early as August is a very good sign for the upcoming year for Puerto Vallarta. It’s been a dry season for so many businesses and we hope that this will be a blessing for the entire business community of Vallarta, not just real estate.
If you are interested in marketing your current home or purchasing a retirement or vacation villa or condo, please contact Wayne Franklin or Jorge Guillen at Tropicasa Realty at 322-222-6505 or via email at franklin@tropicasa.com or jorge@tropicasa.com. Feel free to check out their website at www.tropicasa.com for access to all of their listings and all those available through both MLS systems in the Bay. They will be happy to show you anything available.