The market made a transition in 2008 from being a developer driven to re-sale driven. Real estate office as seeing more activity for re-sales than they are for new product. New product traditionally sells for a premium, as much as 20% for comparable products, but people have been willing to pay this, at least in the past, in order to get the latest styles, amenities, and in many cases, better locations. Many developers also offer financing that is more easily available than that for re-sale properties.
Here’s some statistics with regards to the MLS service for Vallarta – Multi-List Vallarta, for last year.
The current inventory for the MLS shows there are nearly 1,200 properties currently listed for sale. This is up from a year ago when there were 800 listings and from two years ago when there were 500 properties listed. This increase is due, in part, to market conditions – sales have slowed considerably. But its also due to the fact that there have been a huge number of new properties sold over the past five years and now some of them are coming back on the market.
The median sales price for a condominium dropped in 2008 to US$307,000 down from US$328,500 in 2007. However, this price is still up significantly from the median sales price five years ago, which was US$183,500. Median home sales prices were also down, from US$526,650 in 2008 compared to US$648,650 in 2007. The median sales price is still significantly up from five years ago when the average was US$240,000.
The spread between listing price and sales price increased from 6.8% to 9.2% (35% jump over last year). Most realtors noted that for 2009 this spread has continued to increase and will be somewhere between 10-15%.