reflects recent sales prices for similar properties on the north shore of the bay. In Amapas, which has been the condo-king area for a few years and is experiencing incredible development, condos that were selling last year for $300,000 USD on average have been pushed up to $450,000, with listing pricing reaching as high as $1.5 million. Condos are still available for as low as $300,000, but this is becoming increasingly rare.
Price-Comparison Shopping All realtors spoke about working with more sophisticated buyers, who ask intelligent questions and know ahead of time what they want. They also are comparing pricing, not just locally but also with other national markets, such San Miguel de Allende, Cancun and, most commonly, Los Cabos. With regard to Los Cabos, prices in many cases are double those of Vallarta. On a recent “check out the market” visit to Los Cabos with a few Vallarta realtors, we saw firsthand the difference in pricing. At one high-end development we toured, an ocean-view (overlooking three rows of homes), three-bedroom penthouse condominium with 3,400 square feet was priced at $2.5 million USD. Similar condominiums, but on the beach at a similar development (Punta Mita), recently were selling for around $1.5 million. That is a substantial difference. Overwhelmingly, when asked what their buyers were choosing, realtors informed us that when they price compare to Cabo, PV wins nearly every time. And it’s not just because of price. Vallarta just has more real estate variety, a larger community with more services, and the added value of being on the mainland and more accessible to the rest of Mexico.
US Real Estate Bubble Slowdown There has been a noticeable slowdown in many real estate markets in the USA, and concern for how this could effect our local market. For the most part, this is affecting first-time home buyers who are finding themselves unable to afford a home now in their marketplace, or first-time home buyers who have purchased, but now feel the pressure of increasing interest rates and, in some cases, decreasing home values. The second-home buyer, however, continues to be a strong market in the USA, as Baby Boomers continue to look for a second home for family or retirement use. Vallarta’s market traditionally has been driven by the second- or even third-time home buyers; therefore, if there is a real estate bubble, it will most likely not be affected. This sentiment was shared by the majority of the realtors we talked to. Baby Boomers are continuing to retire, they are looking for second homes, and they have the money to make the purchase, in many situations, without financing.
208 | VALLARTA Lifestyles |
Fall-Winter 2006
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