Market goes up
Spring is here and we know that many of you are wondering how the winter season has been for Real Estate sales in the Puerto Vallarta market. Timothy Real Estate Group has seen a good season so far. 2012 has shown some good signs as market reports from the US demonstrate slow growth in Real Estate sales so has our sales season seen growth at Timothy Real Estate Group. Higher numbers in total sales and some increases in many US markets with values are helping people see light at the end of the tunnel once again.
“US market reports show that for the first time in 18 months, home prices in February rose higher. With a median price of $171,881, prices in the 53 cities surveyed rose by 1.1% over February 2011.
Also interesting to note home sales were even higher, up 8.7% from one year ago. With a positive sales trend of 8 straight months above the previous year, it looks like 2012 will witness a very strong home-selling season. As a result of reduced foreclosure activity, inventory continued a downward trend for the 20th straight month, 22.4% lower than the housing inventory in February 2011.
Consumer sentiment appears to be rising, and record low mortgage rates coupled with favorable home prices are attracting homebuyers and investors who don’t want to miss a historic opportunity.” Reported by RRIS Media
It has been my experience in many different Real Estate markets here in Puerto Vallarta that the trickle down effect from market changes in the US, to market changes here in Mexico’s first and second home market, usually take 6 to 8 months to reach us. This goes for both an increase in values as well as a decrease in values.
All the data is pointing to a more active year this year, which is good news for a recovering housing market. As sales numbers have trended higher for several months, we have been anticipating a turnaround in home prices, and it looks like it is around the corner.
Here are some MLS statistics that show where we are for the first three months of the year 2012;
Total Condo Sales Volume Jan, 1, 2012 to April 1, 2012 $14,925,889 (with Centro South and South Shore showing the highest activity)
Total Home Sales Volume Jan, 1, 2012 to April 1, 2012 $4,064,700 (with La Cruz de Huanacaxtle and South Shore showing the highest activity)
Total Property Sales Volume Jan, 1, 2012 to April 1, 2012 $21,108,589 (the average property’s sales price was $315,054, and average days on market for properties is 260 days)
While we haven’t seen increases in property values yet for this year, the AMPI board of realtors have sold 23% more condominiums in 2012 than we did in 2011, 9% more homes in 2012 than in 2011, and our Total Sales Volume is up by 16% in 2012 over 2011. All of these statistics point in the right direction for continued growth.
What Does This Mean?
For Buyers this means that now is the time to jump into the market while prices are still low and there are some great values still to be had. For Sellers it means that they should expect the Days On Market number to come down, and with decreases in inventory we could start to see property value increase during the next 8 to 10 months depending on how our summer season starts to come together. Mexico’s economy remains strong and with continued foreign and national investment in the bay area a slow recovery is expected.
Timothy Real Estate Group – An innovative company setting new standards in Real Estate sales and services has the most professional and experienced Realtors in the Puerto Vallarta area who understand the intricacies of Mexican Real Estate ownership, the local market, Puerto Vallarta property codes and regulations and financing. The Timothy Group uses that knowledge to provide a sound analysis on every aspect of property ownership. Timothy Real Estate Group is known for professionalism and experience and they bring this to every transaction they work on for the benefit of Real Estate investors and developers alike. Ask about our Real Estate Listings