Real EstateUpdate Market 2008 R
ealtors, developers, potential buyers and sellers, all are looking at the local real estate market these days. So far, there have been few signs of any considerable change in the market that would give them a better idea about how things may go in 2008, especially when considering what is currently happening north of the border. There is some reason to be concerned, but there seems to be more than enough reason to believe that Vallarta’s market will weather this better than many US markets. Let’s take a look at what Vallarta has going for it this year.
Outstanding Appreciation
Since 2003, prices for homes and condominiums for the Vallarta real estate market have risen steadily. This is not only a sign of a healthy market, it’s also something that real estate owners very much appreciate. In 2003, the average condominium was priced at $196,000 USD according to Multi-List Vallarta, the MLS service for the regional real estate associations. By 2007, that average price had risen to $351,000 USD (Chart 1). For homes, the increase has been even greater. The average home was priced at $256,000 in 2003, and in 2007 that had increased to $693,000, not a bad return over just five years (Chart 2). Because of the lack of sales prices on properties going back to 2003 (sales have only been reported consistently by board members since 2005), we have used the “list” price of properties; homes didn’t actually sell for these prices. Using the actual “sold” prices available for 2007, the average condominium sold for $338,000 USD, which is only 4% off the list price. The average “sold” price for a house in 2007 was $631,000 USD, which is about 9% less than the listing price. And the average spread between list and sold for all properties in 2007 was 7%, up from 3.1% in 2006 and 4.6% in 2005. All in all, it adds up to five remarkable years. Compared to the US market, which has seen housing prices fall throughout the year (except in primarily second-home markets), Vallarta’s market is very strong, with a substantial gain in appreciation for both homes and condominiums. And this only takes into consideration the re-sale market. New home and condominium sales have traditionally been selling at list price and at prices substantially
A
gentes, desarrolladores, compradores potenciales y vendedores; todos están interesados en el mercado local de bienes raíces. Hasta ahora, ha habido pocas señales de un cambio considerable en el mercado como para darse una idea de cómo irán las cosas en el 2008, especialmente considerando lo que está ocurriendo actualmente al norte de la frontera. Hay razones para estar inquietos, pero también parece que el mercado de Vallarta saldrá mucho mejor librado de esto que muchos mercados en los Estados Unidos. Veamos lo que le espera a Vallarta este año:
Plusvalía sobresaliente
Desde el 2003, los precios de las casas y condominios en el mercado de bienes raíces de Vallarta han aumentado constantemente. Esto no sólo es señal de un mercado saludable, sino que es algo que los propietarios de bienes raíces aprecian mucho. En el 2003, el condominio promedio costaba $196,000 USD, de acuerdo al Multi-List Vallarta, el servicio de listado múltiple de las asociaciones locales de bienes raíces. Para el 2007, ese promedio se había elevado a $351,000 USD (Tabla 1). Para las casas, el aumento ha sido aún mayor: en el 2003, la casa promedio fue comprada por $256,000 USD y en el 2007 el precio había aumentado a $693,000 USD, lo cual implica un rédito nada despreciable en tan sólo cinco años (Tabla 2).
Condos - Average Sales Price $400,000
$351,000 $350,000
$299,500 $300,000
$244,000
$250,000
$224,000 $200,000
$196,000
$150,000
$100,000
$50,000
$0
2003
2004
2005
2006
2007
Average sales price for condominiums sold through Multi-List Vallarta, the MLS service for the local real estate associations. Note: This is what these homes were listed at prior to selling, not the actual sales price. The spread between list and actual sales price has been on average 6% over this time period.
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