After a very difficult past nine months, the Vallarta real estate market seems to be seeing some action with sales being reported by a number of offices and developments. The numbers are way off what they were last year, but there are people interested in looking and more comfortable now in making offers.
I think we are going to be seeing some fire sales for some of the Vallarta real estate developments. After a very slow season, many are finding themselves asset rich but cash poor. There are a number of projects that I have heard from that are interested in selling a unit or two to assist with cash flow. They seem more comfortable with that than actually reducing overall prices. Selling a couple for substantially reduced prices will help out short term, but inventory pricing will probably have to be adjusted as well, to be competitive with the re-sale market, which is traditionally priced below new product, and has seen price reductions. What happens in the fall, as we enter the high season, will determine by how much and when.
A “fire sale” is taking place at El Encanto in Punta Mita for three of their ocean view three bedroom townhouses. The list price is $750,000 and that’s substantially below what the price was this past season (around $1.2 million I believe). I’m sure this is to just unload some product that has been sitting there for some time and to get some cash flow, although they have been having good success with their three bedroom, ocean view condominiums. For more information: http://www.elencanto-puntamita.com.
Here’s another one. Molina de Agua have just announced that they will be reducing their prices for remaining inventory by 35% to unload the few remaining units they have left. Condos that were listed at $815k yesterday are listed at $535K today. The two show units on the first floor, listed at $620k without furnishings, are now available at $450k including at least $50k each in furnishings. For more information contact firstname.lastname@example.org or http://www.timothyfuller.com.