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

Overview

The condo market as of August 2024 shows significant changes compared to the previous year, with notable increases in inventory and pricing, but a decrease in sales volume. 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)

• Active Listings: 1,877 (+31.6%)
• New Listings: 182 (+38.9%)
• Pending Listings: 63 (-3.1%)
• Sold Listings: 46 (-41.0%)
• Median Sale Price: $412,000 (+5.10%)
• Average Sale Price: $518,006.41 (+15.62%)
• Absorption Rate: 24.54 months (+66.83%)
• Average Days on Market: 221 (+11.62%)
• Sale to List Price Ratio: 94.2% (down from 96.9%)

Detailed Analysis

Inventory

The market is experiencing a substantial increase in inventory. Active listings are up 31.6% compared to August 2023, with 1,877 condos on the market. New listings have also increased by 38.9%, indicating a growing supply of condos entering the market.

Sales Activity

Despite the increase in inventory, sales activity has significantly decreased. Sold listings are down 41.0% compared to last year, with only 46 condos sold in August 2024. Pending sales have also slightly decreased by 3.1%, suggesting a continued slowdown in market activity.

Pricing Trends

Despite the slowdown in sales, prices have continued to rise:

• Median Sale Price: $412,000 (+5.10%)
• Average Sale Price: $518,006.41 (+15.62%)
• Median List Price: $459,000 (+4.34%)
• Average List Price: $584,154.06 (+10.95%)

This price increase, coupled with slower sales, suggests a potential disconnect between seller expectations and buyer willingness to pay.

Market Dynamics

• The absorption rate has increased dramatically to 24.54 months, up 66.83% from last year, indicating a significant shift towards a buyer's market.
• Average days on market increased to 221 days (+11.62%), suggesting properties are taking longer to sell.
• The sale to list price ratio decreased to 94.2%, down from 96.9% last year, indicating buyers are negotiating more successfully.

Price Range Analysis

• Lower price ranges ($200,000-$349,999) saw significant increases in active listings.
• Mid-range condos ($400,000-$699,999) also experienced substantial inventory growth.
• Luxury market ($1,000,000+) saw a notable increase in active listings, up 70.5% for the $1,000,000-$1,499,999 range.

Year-to-Date (YTD) Comparisons

• Total sold listings YTD: 586 (-23.4% compared to 2023)
• Median sale price YTD: $386,100 (+16.12% compared to 2023)
• Average sale price YTD: $486,554.20 (+17.13% compared to 2023)
• Average days on market YTD: 213 (-10.88% compared to 2023)

Market Outlook

The condo market is showing signs of a significant shift. The substantial increase in inventory, coupled with decreasing sales and longer days on market, suggests a move towards a buyer's market. However, the continued rise in prices, especially in the year-to-date figures, indicates underlying strength in the market, possibly driven by inflation or other economic factors.

Suggestions for Market Participants

For Sellers:

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

For Buyers:

1. Take advantage of increased options: With more inventory, you have a wider selection to choose from.
2. Negotiate confidently: The market conditions favor buyers, so don't be afraid to negotiate on price.
3. Be patient but prepared: While you have more options, be ready to act when you find the right property.
4. Consider future appreciation: Despite current trends, year-to-date price increases suggest long-term value potential.
5. Seek professional guidance: In a changing market, expert advice can be invaluable in making informed decisions.

For Investors:

1. Look for value opportunities: With more inventory and longer selling times, motivated sellers might offer good deals.
2. Consider long-term potential: Despite short-term market shifts, year-to-date price increases suggest long-term appreciation possibilities.
3. Analyze rental market potential: As some potential buyers wait out the market, rental demand might increase.
4. Focus on unique or high-demand properties: These may hold value better in a shifting market.
5. Stay informed about local economic factors: Job growth, tourism trends, and development plans can impact future value.

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

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• Puerto Vallarta real estate (12)
• Investment Opportunities (3)
• buyer's market (2)
• condo market trends (2)
• AMPIMLS data (2)
• pricing trends (1)
• 2024 market analysis (1)
• Mexico property (1)
• property inventory (1)
• real estate statistics (1)