David Pullen in Puerto Vallarta, Martin Posch in Los Cabos, and Bob Findlay in Manzanillo, have sent brief reports on the latest in their markets.
From David Pullen of PV Realty, Puerto Vallarta:
The Puerto Vallarta market has been through three difficult years and we are starting to see signs of improvement with increased activity. There are still exceptional opportunities available to the second home buyer in Puerto Vallarta. We have not seen so many options at such favorable prices since the beginning of 1990. If you have the available funds and are looking for value then Puerto Vallarta is the place to be investing in.
From Martin Posch of Neiman Posch, Cabo San Lucas:
The first 6 months of 2012 in comparison to the first 6 months of 2011:
Sales volume is down by 15.12% to $93,782,982 US Dollars
Number of closed transactions are up by 25.44% to 256
Average sold price is down by 32.36% to $366,339 US Dollars
Number of active listings are up by 12.25% to 2996
Average list price is down by 8.63% to $790,307 US Dollars
From Bob Findley in Manzanillo:
Over the past two years, Manzanillo has experienced a more diverse range of client demographics. With the expansion of the port facilities, mining and construction of a large regasification plant that will replace the existing fossil fuel electric generating plant, it has brought in foreign contracting firms, mainly of Asian origin. This has brought more sales and rental activity from a previously non-existent Asian market. We are also selling to more clients than ever before from Great Britain. It appears, however, the American market has dropped by approximately 50% percent over the past two to three years. The trend for these clients has been more so on sales for higher end properties ($500K and up). The Canadian client base remains steady but with a slight decrease in volume compared to up to two years ago. We have experienced approximately a 40% increase in Mexican buyers over the past two years. They are buying during the summer months and are mainly from Guadalajara, Colima, and Mexico City.
Overall, property sale prices per square meter in general have decreased over the past two and a half years, particularly with American owned property. Some examples include list price at $1.3 Million US, sold at $635,000 US. A house in Las Hadas listed for $759,000 US sold for $359,000 US. The going sales price for a two bedroom, two bath condo at a popular condominium complex on the beach was around $220,000 US, for the past several years. Now the trend is around $150,000 US. While the average sales price of all types of properties with construction per square meter in 2009 was approximately $1,500 US per square meter the average now is approximately $1,100 US per square meter. In the past, a sale on average would be 10 per cent less that the list price. Now, for the past two years, it is 33 per cent less. Perhaps the trend noted is an indication of correction to inflated market of a few years past.
