Over the summer real estate agencies seemed to have had a decent summer, at least keeping up to the activity they had seen in the earlier part of the year. July, however, was quite a good month with 21 sales reported in the MLS Multi-List Vallarta. That’s the good news. Unfortunately most of the sales had low prices. For the first time in quite some time, houses outsold condominiums (13-8). However, the average sales price for a home was only $185,000 ($350,000 for condos). One house sold for $3 million, however we removed this before calculating average price as it would have distorted it and would not have been a good indicator. So a good month for the number of sales, but not for what they sold for, except for the one in Punta Mita.
July was also an interesting month for the number of days these properties were on the market. Nine out of the 21 sales were on the market for over a year and one for four years. The average days on market for July was 775 whereas the average for the year has only been 380 (which is still quite high). So it seems that July was kind of a late Spring Cleaning; with properties that had been on the market for some time finally lowering or accepting a lower price in order to move the property. It is still a buyer’s market, and quite a good one at them. There are some very good deals out there.
In June there was also one sale for over a million ($1,250,000), which we removed as well to calculate average home sales price, as it was so far off the others. There were just three other house sales and they were all for under $170,000; even lower than July. Even condos fell to just over $200,000 for the average sales price.
In August home prices were back up to $381,000 (but just three home sales) and condos up to $250,000. The average sales price for a condominium is now back to what they averaged in 2007.
Days on Market has average 380 days so far this year.
An encouraging sign is that for the first time in awhile, American visits topped Mexican and Canadian visitors, in both July and August. Hopefully this is a trend for the upcoming high season.
The number of sales for the year is above 2010, although that’s not a hard year to beat! I think we’ll see 2011 in the future as the year the market started to bottom out and turn around.