Real Estate Market Report, 2017 Vallarta / Nayarit – 2nd Quarter
The first half of the year has flown by and we now have the results from the first six months of the 2017 Puerto Vallarta and Riviera Nayarit real estate market. It has been a wonderful year so far filled with incredible weather, activities, theatre, concerts, parades and celebrations, and of course a busy real estate market. Let’s jump in!
Here is a comparison for the first half of 2017 compared with the first half of 2016.
As illustrated by the numbers, we had a super start to 2017 in Puerto Vallarta and Riviera Nayarit this year. It seems the hangover from the 2008 financial crisis seems to have finally passed.
The number of Condominium sales in the region increased by 86% and sales volume increased by 88%. The average Condominium sales price is up by 1%.
The number of Home sales increased 79% and sales volume by 76%. The average sales price has dropped slightly by 6%, due to extra inventory still on the market, but now represents some great opportunities to purchase at great value.
Some folks have waited for the effects of the 2008 financial crisis to soften before listing their properties and with the demand now starting to meet the supply, we expect a very solid second half of the year for buyers and sellers.
Additionally, Mexican National and Canadian buyers faced the challenge of very high exchange of up rates up to 35% – 40% until this year. The exchange rate is about 18 pesos to the US dollar as of this writing, which seems to be enough for the pent-up demand of the Mexican and Canadian buyers to take action, which has also been a contributing factor to the robust market.
Additionally, an increase in visitors to Puerto Vallarta and Nayarit is impacting the hotel and rental market. The Puerto Vallarta Tourism Board reported that for the months of January through November of 2016, tourism volume increased 19% in Puerto Vallarta compared to the previous year. The ongoing influx of tourists arriving in Puerto Vallarta and Riviera Nayarit, reflects a growth in demand for vacation rentals, which may also have an impact on home and condo sales as investors become more interested in maximizing real estate potential in the region.
Vallarta Occupancy 2016: 70%
For Puerto Vallarta, 2016 was one of the best years in the tourist industry in the last 15 years, when it welcomed nearly four million international and national tourists, said the director of the Puerto Vallarta Tourism Trust (Fidetur), Agustín Álvarez Valdivia.
Nayarit Occupancy 2016: 83%
Nayarit has more public and private investment of any state in Mexico, so it’s not surprising that we’re seeing rapidly increasing number of visits. Occupancy in Bahia de Banderas was 83.35% and visitors to Sayulita were up 112% from 2015 to 2016.
Vacation rental websites are strengthening property value. As you might guess, Puerto Vallarta and Nayarit have a very large short-term rental market. For this reason, vacation rental websites, such as Airbnb and VRBO, who allow property owners from around the world to capitalize on unused real estate are significantly increasing the value of properties in the region. These services are changing the way people look at property ownership, and therefore, changing the residential real estate market. Property ownership is now, more than ever, seen as an investment opportunity. Those wishing to own a vacation home in Vallarta / Nayarit can choose to rent their property when not in the country, until they decide to relocate full-time to Mexico
The look and feel of the region is under transformation, driven by the unparalleled growth in the tourism market. Various entrepreneurial and government initiatives over only the last 3 years or so, has brought the attention of short-term tourists, relocating retirees and families from north of the two borders and beyond. Recognition by travel organizations and media from around the world has been unprecedented, and contributed to the aforementioned jump in tourism numbers and new international exposure.
Everything is pointing in the direction of even more accelerated growth with the increase of visitor numbers: a jump in direct airline flights from new international locations, effective tourism marketing and of course, the new toll highway from Guadalajara — which will cut driving time in half — and generate more interest from Mexican Nationals.
The financial recovery in the United States, easier access for Nationals and more baby-boomers retiring and younger people and families making a permanent or temporary move to Vallarta/Nayarit is really driving the market recovery.
Our experience also tells us that short-term a tourist often evolves into a long-term client, and owner here in paradise. One visit and they’re convinced…it’s the magic of the place!
Number One in Vallarta/Nayarit
As proud agents of Timothy Real Estate Group we are happy to report that we have been the number one listing and selling agency in the Bay of Banderas for the last seven years. Ongoing training and applied knowledge, paired with exceptional service and enthusiasm is critical to our success and the important next step in your life journey.
Of course, we also have the latest technology, marketing tools, statistics and research at our disposal, but a successful real estate transaction really comes down to people. By connecting the right buyers and sellers and investors, we believe it is undeniably about the people we serve during this experience. Our goal is always to structure solid transactions with successful outcomes for folks like you, who can see what we experience living in this very special place in the world.
Contact us at Timothy Real Estate Group. Vallarta / Nayarit’s Leader in Real Estate.
+52 1 322.199.2704 Penny@timothyrealestategroup.com
+52 1 322.191.1888 Wayne@timothyrealestategroup.com
Timothy Real Estate Group is a locally–owned and operated real estate brokerage with 3 strategic locations in the Romantic Zone of Puerto Vallarta in the Colonia Emiliano Zapata, one in Bucerias, Nayarit, and of course downtown Sayulita, Nayarit. Vallarta/Nayarit has many neighborhoods with diverse personalities and our agents are not only representing you, but those communities we love.