With markets such as Arizona, Las Vegas, Miami and parts of Florida, plus parts of Southern California, now experiencing drops of 35% off their highs, the competition for Puerto Vallarta isn’t going to be Cabo, Cancun Hawaii or Panama going forward, its going to be the places mentioned above.
Arizona has been a traditional destination location for west coast Canadians for years and Florida has been the place for east coast Canadians, so although we have been enjoying a resurgence in Canadian buyers in Vallarta we may start losing them to the great deals that will be coming on the market in their once traditional markets. Its great living on the ocean in PV, but the prices just may be too good to turn down in Arizona. They went through this before with the Savings & Loans crisis and many Canadians ended up with homes and very good prices as a result. Will we see the same thing happen this time around? I guess it depends on just how far these markets drop.
For Americans, these are properties that are right in their backyard. Even if they are not interested in a second home in these areas, they may attractive as investment properties. And with the number of foreclosure properties increasing, this becomes even more attractive for investors.