It’s always the elusive question. While Puerto Vallarta has not one, but TWO MLS systems, it can still be difficult to get a handle on what is happening with the market. One real estate company is having a terrible year, and yet another is on top of the world, a just-listed property has nearly a full-price offer, while another beautiful condo has been on the market over a year… what does it all mean? Like all real estate markets, the market in Puerto Vallarta can be fickle. Although it has enticing qualities such as appreciation and stability, like any market it is reliant upon a variety of factors, like stock fluctuations, health and wellness, divorce, spontaneous desires, financial concerns, lending liquidity, and a myriad of other circumstances. All of these factors make up the real estate market in which we find ourselves. While statistics can be a relatively boring topic, it seems that everybody gravitates to a conversation about real estate stats. While the AMPI-sponsored MLS is not the only source for statistical information or necessarily the most complete, it is a strong benchmark for trends, indicators and basic information that is helpful for understanding the current market. And 2013 vs 2012 did produce some interesting market numbers across all categories of properties.
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The average number of days on the Puerto Vallarta market before a property sells. |
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The current number of listings showing on the AMPI, which does not include some developer properties or for sale by owner properties. |
$700 000 000 – There is currently just under $700 million in inventory on the Puerto Vallarta real estate market. However in the 2007/2008 period, the volume of sales for the region was $500 million.
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The average amount sellers reduced the asking price of their homes in December, the smallest number since prior to 2011. This is a great indicator of the market securing up. |
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The decline in condo unit sales. |
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However, the average asking price of single-family residences soared in 2013 by 116%! |
Popular areas for condo buyers included Central South (Alta Vista, Emiliano Zapata, Olas Altas) and the South Shore (Amapas, Conchas Chinas, Mismaloya). For houses, a full third of sales were realized in Bucerias and La Cruz.
So the big question? How long will my property take to sell and at what price? In a tourist driven zone, you
may get lucky and have the right buyer walk in within 90 days but it’s best to plan on up to a year and consider renting or using your property in the meantime to generate income.
To maximize your profit on your property:
- Interview 3 agents. Gaining insight from all agents will provide great insight.
- Don’t get starry-eyed by the highest proposed listing price as it may not be realistic. Ask your Realtor to justify the price with actual SALES info, not listing info.
- Understand your tax obligations. Remember, the law has changed, and NOBODY is FULLY exempt anymore. This can and/or will ultimately affect your bottom line.
- Price your property accurately and you will reap the rewards of the highest sales price in the shortest period of time.
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Once a property is priced accurately, you can expect to sell it within 5-11% of the asking price (the MLS says a solid 7.8% average off sales price from asking price in 2013). And yes, there have even been FULL PRICE OFFERS this year. |
Get ready, we may be on the verge of a recovery … but, shhhhh, don’t tell anybody.
We don’t want other countries to get jealous.
Wayne Franklin is the owner/broker of Tropicasa Realty (www.tropicasa.com), established in 1997. If you have questions about this article or would like to speak to Franklin directly about buying or selling a home or condo, you can contact him at franklin@tropicasa.com or by calling his office at 222-6505.