We are in a stand-still now, waiting to end the lock-down until the virus health issues are resolved or stabilized. The Mexican federal and state governments are enforcing certain restrictions, such as staying at home for all who do not have critical businesses.
Mexico is not the only country with the problem, so this is very different from how our market in Mexico was affected during the US Housing crisis of 2008. We had little demand for 5 years, and began to recover when new product was built, which attracted a different demographic from our prior client base.
Puerto Vallarta is One of World’s Best Places to Retire
We have been enjoying new construction product sales to a large degree, and we have remained on the top list of the best beach resorts in the world, as well as high on all lists for top places to retire.
We have for the most part, cash sales rather than leverage sales with mortgages on our properties. Sellers do not have worry as much about having to make large payments to keep the property. Cost of maintaining these properties is low, based on the expenses being in Mexican pesos. Foreigner owner’s currency in US dollars, or even Canadian dollars goes much further than even 6 months ago.
We do not need to panic and make irresponsible statements in social media that we will have deep discounts, and all properties will have lowered prices. This statement would come from naïve uneducated real estate agents.
1. We know we are in a buyer’s market.
2. We know we have a superior tropical location in North America.
We have the ability to offer resales and new construction, as many of the developers are sending us messages that they will continue their projects.
We do not have overleveraged purchases. And it may be possible for some owners to re-negotiate their mortgages for a period of time.
Our time is better used to study our market, and other markets. We need to focus on our current client base and let them know we understand these times are difficult.
We should not hard sell or be insensitive to the health and economic issues every country, state, area and individual owners are facing in this crisis.
Now, being creative and thinking/acting out of the box is an asset.
Be mindful, be mature, be responsible.
And BE CREATIVE.
Puerto Vallarta Real Estate Blog published every week –
read it here: http://casasandvillas.com/blog/
and in the PV Mirror:
http://pvmcitypaper.com and at newsstands throughout Puerto Vallarta
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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