Realtors start calling you, or asking you out for breakfast or lunch to talk about the state of the market. They usually, or haven’t been doing that, for years. They have just been too busy writing up contracts and listings to have anywhere near the time to ask how the market was. And they didn’t need to ask, it was so hot that they could barely keep up with it. They were working until past midnight many nights. You rarely saw them out unless it was for the opening of a real estate development or for a home openhouse. They didn’t have time to socialize. And they didn’t have time for a breakfast or lunch to “chitchat”.Well, they seem to have a little bit more time for that lately.The phone calls start off talking about some other subject, as they don’t want to just jump into asking how the market really is, as they may come across as being, perhaps, a little desperate. So they chitchat a little first, and then they drop the “Oh by the way…”
Realtors are concerned. And this is what I’m getting back: Many of the veteran offices are still busy, perhaps as busy as any decent in year, but the problem is that there are more owner’s listings, or developer’s properties, to deal with. Last year’s sales, as good as the were, just aren’t good enough this year to satisfy everyone. There’s more listing in inventory and there’s more developers with a lot of product to move. And sales aren’t keeping up. So there’s less to go around for everyone.Projects that are unique and really have something special to offer, continue to do well. Those that don’t, well, won’t. Especially for condominiums. We have too many condos on the market, no matter how unique they are. Developers coming out with new condominiums and are looking for a real estate agency to sell them, may have trouble finding a company to represent them; they want to make sure they can take care of the developers they already have and don’t need another developer calling regularly to ask why they haven’t sold anything of his recently. And there’s a cost to representing a developer, especially if its not moving quickly. So realtors are being more selective of which projects they will represent.
The frenzy days are over. The market is becoming more normal. They days of buyers being worried that they may miss out on a great deal are passed. The pendulum is shifting so that the market is becoming a buyer’s market, compared to the seller’s market we have experienced for the past 4-5 years.
And that’s what happens with markets, they go up and down. Ours is starting to slow down. How will we weather it? I think we’ll be fine.Puerto Vallarta is one of Mexico’s top favorite tourism destinations. Mexico is very favorable for Americans because of close proximity, weather, and real estate is based in US dollars. Financing will finally come into its own. Finance companies have been in the market for a few years now, they know the market, realtors know the products and rates and costs are reasonable. There are still a lot of people out there who have money and want a place somewhere warm (especially with the winter many of them are experiencing right now!) and PV is a perfect place for that, with a wide variety of property and price options.
We’ll do just fine!