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Puerto Vallarta Real Estate Market Update

So, what’s happening in the Puerto Vallarta real estate market? Are prices plummeting? is there a sell off panic?
In a word: No.
Let’s put that in perspective. Vallarta’s real estate market has been affected just as virtually every other market in the world has been affected. That last year has been tough for the real estate industry in Vallarta and there are more than a few real estate agencies that were here last year that are not here today. Prices for a property in Puerto Vallarta have dropped, in real terms, about 20%.

A little more perspective. Miami’s vacation condos of the type we commonly see here in Nuevo Vallarta, Flamingos and other parts of Puerto Vallarta lost roughly 50% of their value… here in Vallarta, the correction was less than half that. The reason? In Puerto Vallarta most homes are owned outright, most people bought in with cash. Mortgages have only been available here for the last five years or so. This means there is a huge amount of equity here, people who own their homes don’t need to sell to avoid foreclosure (foreclosures in Vallarta are rare), in most cases they are positioned to wait out the downturn and sell when the market recovers.
Ocean Vista is a quality Ocean Front Condominum in Nuevo Vallarta

Ocean Vista is a quality Ocean Front Condominum in Nuevo Vallarta – Seller Motivated!

All this equity adds stability to the market. Even in the quiet market of the last 18 months, prices have held relatively steady and Vallarta will emerge a strong, solid investment… as it always has been.

For those looking for a safe place to invest in times of uncertainty, Vallarta is a unique opportunity. Prices are at a 3 to 4 year low, but that may soon change. With the season upon us, sales are beginning to move again, and the Puerto Vallarta real estate market is reactivating after lying dormant for more than a year. Properties are starting to sell and industry colleagues are optimistic that we have passed the bottom and the market is now on it’s way to recovery. I say recovery conservatively as we are no where near the market we had even 2 years ago, but the needle is pointed up again and we are moving in the right direction. Right now is the time to find deals and get in at prices that have not been seen in 3-4 years. Right now, sellers are willing to negotiate more than they were last year, right now developers are feeling the pinch and are open to offers that were not even considered 18 months ago (be careful which developers though, some are feeling more pinched than others).