Since 2003, prices for homes and condominiums for the Vallarta real estate market have risen steadily. This is not only a sign of a healthy market, its also something that real estate owners very much appreciate. In 2003 the average condominium was priced at US$196,000 according to Multi-List Vallarta, the MLS service for the regional real estate associations. By 2007, that average price had risen to US$351,000. For homes the increase has been even greater. The average home was priced at $256,000 in 2003, whereas in 2007 that had increased to $693,000, not a return over just five years.
Because of the lack of sales prices on properties going back to 2003 (sales have only been reported consistently by board members since 2005), we have used the “list” price of properties, homes didn’t actually sell for these prices. Using the actual “sold” prices available for 2007, the average condominium sold for US$338,000, which is only 4% off the list price. The average “sold” price for a house in 2007 was US$631,000, which is about 9% less than the listing price. And the average spread between list and sold for all properties in 2007 was 7%, up from 3.1% in 2006 and 4.6% in 2005. All in all, it all adds up to five remarkable years.
Compared to the US market, which has seen housing prices fall throughout the year, (except in primarily second-home markets), Vallarta’s market is very strong, with a substantial gain in appreciation for both homes and condominiums. And this only takes into consideration the re-sale market. New home and condominiums sales have traditionally been selling at list price, and at prices substantially above the re-sale market. People prefer the new product with the latest styles in design and architecture, as well as the most modern amenities, and are willing to pay more for it. So if the development products were also included in these numbers, appreciation would be even higher, especially for condominiums.
It should also be noted that there was a very large spread between the lowest price sale in 2007 (US$87,000) and the highest price (US$2,470,000). There are still affordable homes and condominiums available in Vallarta. They may not be on the beach or have an ocean view, but they are here and they are selling.