We had an incredible 2020 compared to many markets in the world. We know all of North American real estate has been active: buying and selling with, for the moment, healthy demand and supply. We still do not know what the underlying world-wide economics are suffering as a result of lockdown from the coronavirus.
We will begin to see more clearly in 2021 how much damage and how much positive economic or lifestyle changes are the current ¨norm¨.
Our Flex FBS *reporting, as of Jan 3, 2021 from the database of Compostela, Nayarit and Vallarta reporting AMPI members, shows we have sold condos and homes in 2020 in the amount of $303,407,116 USD. Our US dollar sales volume for 2020 compared to the year prior is down -23 %. This is an amazingly low percentage compared to what we may have experienced. We are very fortunate that there is demand for two particular markets on the west coast of Mexico: Los Cabos and The Bay of Banderas.
We show 901 properties sold (condos and homes). Our average sale price for both together is $336,745 USD, down -7% from 2019.
CONDOS – 2020 Market Stats
Active listings were 2,630. Total number sold of pre-construction and resale was 689 with a total sales volume of $231,864,866 USD. The averages sales price was $336,524 USD, up 5% over year prior. Percent of list was 94%.
Average discount was 6%.
Most active areas were Centro South, Nuevo Vallarta West, Hotel Zone, and the South Shore.
HOMES – 2020 Market Stats
Active listings were 939. Total number sold of pre-construction and resale was 212 with a total sales volume of $71,542,250 USD. The average sales price was $337,463 USD, down -29% of average price the year prior. Percent of list was 92%. Average discount was 8%.
Most active areas were Southshore, La Cruz, Bucerias, North West Nuevo Vallarta.
Note three of these areas are in Nayarit.
Looking Forward to 2021
Our current market, as we enter 2021 is active, with many appointments being made to show properties, many North Americans for the most part, looking in person and via online technology. We as agents wearing masks and showing properties via face time or online zoom. In March when we were just going into lockdown, homes under 500k on the south shore became high in demand. All under 500k sold by May 2020.
We have also seen an active market and solds in homes in Francisco Villa West and East. We could be selling more homes under 500k if there are available in these. Two particular areas, and more may open up if we have the product. We suspect the higher cost of land being sold for condos, makes the business of building single family homes harder as the price of land is too high to have a successful business.
Condos continue to be the most popular with the average price inching up slowly.
Buyers are learning that condos do not always offer a great view of the ocean from the unit itself, but they are in areas they like to walk, and the owner depends on satisfying his desire to see the ocean, from the roof top. The roof tops of the new buildings are elaborate combinations of infinity pool, jacuzzi, gym, barbecue area, lounge areas.
Buyers want security, and many of the new buildings have 24-hour security and concierge services, as well.
Dates for new construction occupancy, and later closing, are now into 2022 and the first half of 2023. Buyers continue to put down payments and make payments through construction.
Homes are being purchased by buyers intending to spend more time here or even full-time. Everyone wants pets so buildings not allowing pets or reasonable rules for them, suffer more against the competition of buildings which to allow them.
Buyers of homes are paying all cash for the most part, even if the funds come from re-financing properties in the US.
We are expecting an adjustment upwards for closing costs. All cities seem to have to raise their tax rate or raise the tax value of the property, in order to receive more tax money to pay in part for the help given to businesses and individuals to live through the loss of income.
We will be blessed if this momentum continues. But we need to be realistic and not take any sale for granted. We truly do not know how 2021 will end of being for all of us in the world as we know it.
*Information is deemed reliable but not guaranteed 2021 MLS and FBS.
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This article is based upon Flex MLS reporting, legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review. If you have any other questions, contact me through my website.Harriet Murray