Hola!
I hope you all had a great Holiday Season. I went home to Canada for the Holidays which was the first time in 8 years. It was cold and I appreciated coming back to my Puerto Vallarta home.
In these Newsletters I try to give you a picture of the market at this given moment so here it is in my humble opinion.
If you talk to any agent, they will tell you that things are good as they do not want to create a negative image, and they are protecting the prices. I am a tad different and I will tell you the truth. We have over 2247 listings on the MLS market which is a number I have not seen in my 9 years here. Half of them are pre-construction. We are experiencing an endless flow of price reductions and open houses which is an indicator of agents not being busy.
Simple Demand and Supply principles would suggest that prices will go down however due to the low carrying cost here and the abilities to make rental income so the really good listings tend to hold onto to their price.
I have a listing in 5 de diciembre that is a 2 bedroom and 2 bathrooms in almost 2000 square feet that I just completed a 10% price drop and it is not the only price drop that I have completed for my clients. It has some water view and a low HOA however I have only showed it twice since September. This is an example that is being played over and over here in this market.
So, in conclusion, today’s market IS A BUYER’S MARKET! A good time to test what your budget can do and buy me a cerveza when you are here.
Take care,
P.S. For me to go back to Canada during the Holiday Season tells you that it is slow.
