Our AMPI Vallarta organization for local real estate professionals recently had a briefing on Mexico’s economy from Corporación Actinver, a Mexican investment firm that offers private and wealth banking, asset management, wealth management and investment banking through its 60 offices throughout the country.
We learned that inflation is low and Mexico is paying back its debt using U.S. dollars. The country is still affected by the lower price of oil and, In general, the strength of the U.S. dollar has made all other currencies lower.
Further, since January, Puerto Vallarta restaurants and hotels have been full, with even less successful restaurants booked. The weaker peso is making a vacation in Mexico too good to pass up.
As for the local real estate market, everything seems to be pointing up. Sales of condos and homes since January 1st of this year are up 20 percent, although the average sales price is 14 percent lower than the same time last year, now averaging US$229,329. Condos continue to lead sales volume and the number of units sold. Homes represent about one-quarter of all properties sold.
The total number of condos sold since January 1st was 86, a 30 percent increase over the same period last year. By area, Centro South condo sales are up 17 percent, the Hotel Zone north of downtown is up150 percent (average sales price US$258,407), Maria Vallarta is up 511 percent (average sales price US$285,862), Nuevo Vallarta West is up 155 percent (average sales price of US$159,000), but Vallarta’s South Shore is down 7 percent (average sales price of US$302,746).
Looking at home sales for this selling period, 17 homes were sold in 2016 but 30 this year, a 76 percent increase.
Aramara and Bucerias have more sales at average prices between US$111,000 and US$122,000.
Centro North is down 28 percent in sales volume but the average sales price has increased to US$130,533.
Francisco Villa West is doing better than West this year with an average sales price of US$200,050, which is a 185 percent sales volume increase from last year.
Nueva Vallarta West sales are higher than Nueva Vallarta East with an average sales price of US$227,000. The number is down 16 percent from the average sales price last year at this time.
Up north in San Pancho, sales volume is down 29 percent with an average selling price of US$323,500.
Vallarta’s South Shore reported just two sales compared with none last year. The average sales price was US$209,157.
We did not receive a report from Punta Mita.
This article is based upon legal opinions, current practices and my personal experiences. I recommend that each potential buyer or seller conduct his/her own due diligence and review.