Comprehensive Homes Market Report: August 2024 - Puerto Vallarta and Area

Overview

The homes market in Puerto Vallarta and the surrounding area as of August 2024 shows significant changes compared to the previous year, with notable increases in inventory but decreases in sales prices. This report analyzes key metrics to provide insights into the current state of the market. All data presented here is sourced from the AMPI MLS (Asociación Mexicana de Profesionales Inmobiliarios Multiple Listing Service) and represents comprehensive information for Puerto Vallarta and the surrounding area.

Key Metrics (August 2024 vs August 2023)

Detailed Analysis

Inventory

The market is experiencing a substantial increase in inventory. Active listings are up 54.7% compared to August 2023, with 557 homes on the market. New listings have also increased by 17.5%, indicating a growing supply of homes entering the market.

Sales Activity

Sales activity has decreased significantly. Sold listings are down 16.0% compared to last year, with only 21 homes sold in August 2024. Pending sales have drastically decreased by 66.7%, suggesting a continued slowdown in market activity.

Pricing Trends

Unlike the condo market, home prices have seen a notable decrease:

• Median Sale Price: $399,900 (-20.02%)
• Average Sale Price: $553,919.29 (-10.20%)
• Median List Price: $583,352 (-5.91%)
• Average List Price: $982,543.86 (+2.76%)

This price decrease, coupled with slower sales and increased inventory, suggests a significant shift towards a buyer's market.

Market Dynamics

• The absorption rate has increased dramatically to 25.32 months, up 73.54% from last year, indicating a significant shift towards a buyer's market.
• Average days on market increased to 269 days (+57.31%), suggesting properties are taking much longer to sell.
• The sale to list price ratio decreased to 90.2%, down from 96.9% last year, indicating buyers are negotiating much more successfully.

Price Range Analysis

• Lower price ranges ($200,000-$349,999) saw significant increases in active listings.
• Mid-range homes ($400,000-$699,999) also experienced substantial inventory growth.
• Luxury market ($1,000,000+) saw a notable increase in active listings, up 37.2% for the $1,000,000-$1,499,999 range.

Year-to-Date (YTD) Comparisons

• Total sold listings YTD: 173 (-1.7% compared to 2023)
• Median sale price YTD: $399,900 (-7.43% compared to 2023)
• Average sale price YTD: $552,787.75 (-4.48% compared to 2023)
• Average days on market YTD: 224 (+7.18% compared to 2023)

Market Outlook

The homes market is showing signs of a significant shift towards a buyer's market. The substantial increase in inventory, coupled with decreasing sales, longer days on market, and falling prices, all point to favorable conditions for buyers. However, this presents challenges for sellers who may need to adjust their expectations.

Suggestions for Market Participants

For Sellers:

1. Price competitively: With increased inventory and falling prices, accurate and competitive pricing is crucial.
2. Prepare for longer selling periods: The average days on market has increased significantly, so patience is necessary.
3. Consider timing: If not urgent, monitor the market for potential stabilization before listing.
4. Highlight unique features: With more competition, make your property stand out through upgrades or professional staging.
5. Be open to negotiations: The decreasing sale to list price ratio suggests buyers are negotiating much more successfully.

For Buyers:

1. Take advantage of increased options: With more inventory and falling prices, you have a wider selection to choose from at potentially better values.
2. Negotiate confidently: The market conditions strongly favor buyers, so don't be afraid to negotiate on price.
3. Be patient but prepared: While you have more options and time, be ready to act when you find the right property at the right price.
4. Consider long-term value: Despite current price decreases, consider the long-term potential of the property and location.
5. Seek professional guidance: In a changing market, expert advice can be invaluable in making informed decisions and navigating the negotiation process.

For Investors:

1. Look for value opportunities: With more inventory, falling prices, and longer selling times, motivated sellers might offer excellent deals.
2. Analyze rental market potential: As some potential buyers wait out the market, rental demand might increase, potentially offering good returns on investment properties.
3. Focus on unique or high-demand properties: These may hold value better in a shifting market.
4. Consider long-term appreciation: While current trends show price decreases, Puerto Vallarta remains a desirable location that may see recovery and growth in the long term.
5. Stay informed about local economic factors: Tourism trends, infrastructure developments, and other economic indicators can impact future value and should be considered in investment decisions.

Remember, real estate markets can vary significantly by location, even within the Puerto Vallarta area. Always consult with local real estate professionals for the most accurate and up-to-date information specific to your area of interest.