In the Summer/Fall issue of Vallarta Lifestyles we focus on the local real estate market and for a number of years we have featured an article on the real estate trends we see taking shape in the local market. I’m outlining some of the one’s that we have noticed below. If you have any suggestions, please do comment.
Speculation is Gone, at least for Awhile
Speculation drove a large part of the market in years past. Today, real estate investment has to make sense and stand on its own merit with a potential upside gain considered a bonus, not the main reason for buying.
Shift from Vacation Property to Retirement Property
In the past the majority of real estate sold was for a vacation home for the family. This is not switching so that the buyer is looking for a retirement property, a place to actually live six months out of the year, or perhaps even the full year.
Real Estate Redesign
Developer, architects and interior designers are having to rethink real estate design, offering smaller, more practical with less items now considered considered luxurious and not essential. Focus is on value, frugality with less glitz.
“Lifestyle” and Community is now even more Important
People want to be close to where congregate. Be able to walk in or to town, to the cafe, to engage, to feel they are participating. The “get away from it all”, having a place far away from everyone, is just not as popular, for a number of good reasons.
Security is now even more Important
Very much related to the topic above. People are taking this seriously into consideration with their real estate purchases.
More Attention towards Expenses and Cost of Ownership
People are paying much more attention to what the HOA fees, services, closing costs consist of, than ever before. Many are working with a reduced budget and need to adjust.
Canadians are Strong Buyers
Visits to the MLS service by Canadians now equal that of their American counterparts. Traditionally they are about half. Their dollar, real estate and economy are doing very well and they are buying real estate in Vallarta.
Reduced List Prices
Last year developers were still waiting and hoping. This year they are more realistic and ready to deal with a very different market landscape. And for many that has meant readjusting the price list. The same for re-sale properties – price reductions are common and the gap between list and eventual sales price has increased dramatically.
Renting the Home out now more Prevalent
There are more people who in the past would not have rented, now entering the rental marketplace. This is flooding what is already a saturated market. Short-term renters realize this and are bargaining, and obtaining good rates.