How can I know that the prices will not go up anymore when I have my Property For Sale in Puerto Vallarta?
If you follow the real estate market in Puerto Vallarta and Banderas Bay, you will notice substantial changes in the market. In the last year, we have had a sudden growth in the sale prices of properties.
The pandemic, in general, created a change of consciousness in many people’s lives. This change of consciousness led them to value health and time more. Consequently, travel, fun, and quality of life are understood as a healthier life, making tourist/vacation destinations outside the big cities receive permanent migration and more frequent and more prolonged visits. Puerto Vallarta was no exception; the demand for property rentals, property purchases, and hotel occupancy increased. This increased demand exceeded available capacity significantly, bringing inventory levels of available properties to a minimum; as in any market, low inventory levels exert pressure on prices, driving them upwards. Additionally, other factors have had a similar effect on the inventory of available units.
USA higher inflation rate made cash owners move fast to the Real Estate segment to protect from inflation. They swap their current cash for real estate assets. Also, changes in local government authorities and changes in district construction regulations have significantly slowed the construction of new properties for the market, causing further pressure on prices. It is estimated that in the second half of 2022, the withheld building permits could be released, and more than 1,000 properties for sale would be available in the Puerto Vallarta and Bahía markets.
In the world of real estate, this imbalance where the number of buyers is much more significant than the inventory is called “Seller’s Market” because sellers have control over prices since there are few properties for sale and many buyers want to buy. Puerto Vallarta and the bay were traditional “Buyers’ Markets” because there were many properties for sale and few buyers. Consequently, the buyers decided where to offer, offered what they wanted to pay, and could choose among so many properties for sale, forcing sellers to compete on price and features.
We currently have the most notable difference between the demand for units (very high) and available inventory (very low) in the last 12 years; for this reason, prices are growing fast, possibly reaching their maximum.
Suppose you have a property in Puerto Vallarta or Banderas Bay. In that case, this is definitely the time to sell it and collect the highest possible appreciation from the day of the initial purchase.
How long should you wait to sell at the highest price?
We cannot accurately predict the price peak and when it occurs; however, in the second half of 2022, the construction permits held for more than two years could be released, and thousands of units will enter the market. Consequently, prices will stabilize or could even decrease due to the availability of excess new properties.
Our recommendation is to list your property immediately, at a minimum acceptable price that meets your expectations, but also leave the option open for offers higher than the minimum fair price; in this way, you can receive higher offers according to the moment of the market. This can be controlled through a Reserve Auction.
If you plan to reinvest the money from the sale in other properties in the area, it is also the ideal time. You will be able to obtain a high profit from the sale of the current property, and in the coming months, you will be able to reinvest in pre-construction properties with great discounts, having a high return on investment.
If you have any questions, do not hesitate to contact one of the MexLife Realtors agents, they are specialists in the Puerto Vallarta and Riviera Nayarit markets.
