The following advice was given about the Hawaiian market on the blog; Its pretty good advice for Vallarta’s market as well, just replace “Maui” with “Vallarta”…
2009 Predictions and advice
We will continue to see selling prices decline in certain types of condominiums. There are bargains to be found in
- Oceanfront garden view units
- Properties where maintenance fees have gone up and occupancy has gone down
- Properties in which owners are being pressured to implement expensive renovations
- Anywhere that the 4 D’s are in play: death, divorce, disease and desperation.
Prices will hold in properties that are:
- Renovated already
- On the ocean with great views
- In a unique location (think Napili Bay, Kapalua Bay, parts of Makena)
A word to Buyers
If you have ever been in the market for Maui property, now is one of the best times ever to be a buyer. There are certainly bargains to be had at certain properties. Your Realtor can root them out.
And even where prices are holding, now might be the time. Otherwise in 5 years you will walk into my open house and say, “Lee, I remember back in ’09 when I could have picked up this oceanfront 2 bedroom unit for under a million dollars.”
There’s that rearview mirror again.
A word to Sellers
People are still buying. So if you are selling now you have to be smart about pricing.
If you are in the first group of properties I described, the ones where buyers are likely to find bargains, be strategic. Prices are declining, so pricing at the top or above what condos are selling for means you are going to continue the pride of condominium ownership on Maui. And worse, if you need to sell you will be doing what we call chasing the market down. You will be reducing the price over and over but you will always be just behind the price point at which your condo will sell. Listen to your Realtor and get ahead of the curve.
If you are an owner in the second group of condos I described and you want to sell don’t get greedy or you too will continue to experience the pride of Maui condo ownership. Sooner or later people will pay for quality, but in this market they are deathly afraid of overpaying. Price your condo fairly, in line with the market and look for offers. If you are not getting showings or offers in a few weeks, consider a price adjustment.