FEB 2025 - Puerto Vallarta & Area MLS Condo Market Report
Published: March 1, 2025
TL;DR
The Puerto Vallarta condo market is shifting to a buyer's market with a 78.82% increase in absorption rate and 55.1% rise in active listings. Strong demand in mid-to-high price ranges ($250,000-$799,999+) is driving sale prices up by 27.50% and cutting days on market by 3.21%. Sellers are reducing list prices by 5.75%, yet buyers are paying 93.6% of asking prices, signaling a competitive and dynamic market.
Comprehensive Market Analysis
This analysis covers monthly trends from March 2024 to February 2025, yearly comparisons, and year-to-date (YTD) statistics for the Puerto Vallarta and Area MLS condo market.
Key Market Trends (March 2024 - February 2025)
Over the past year, the Puerto Vallarta condo market has seen substantial shifts that impact both buyers and sellers. Inventory levels are rising, and the market is beginning to favor buyers. However, demand remains strong in mid-to-high price segments. Here's a breakdown of how the key factors are playing out:
- Absorption Rate: Increased from 22.26 in March 2024 to 40.18 in February 2025 (+78.82%), indicating a growing inventory relative to sales and a shift toward a buyer’s market.
- Average List Price: Decreased slightly from $579,842.98 to $548,472.11 (-5.75%), suggesting sellers are adjusting prices downward to remain competitive.
- Average Sale Price: Rose from $493,160.12 to $532,643.00 (+27.50%), reflecting strong buyer demand despite lower list prices.
- Average Days on Market (DOM): Decreased from 213.5 to 181 days (-3.21%), showing properties are selling faster.
Active Listings & Market Saturation
With a 55.1% increase in active listings and a staggering 105.1% increase in new listings YTD, inventory is flooding the market. This means more choices for buyers, but sellers must be strategic about pricing. If the pace of new listings continues to outstrip sales, properties will take longer to sell, and pricing pressure could increase. While we aren't seeing significant price drops yet, a slowdown in demand could force sellers to become more aggressive with reductions.
Price Segmentation & Buyer Behavior
Examining price trends reveals that the $250,000-$799,999+ range is leading sales growth, while properties under $250,000 are struggling. This suggests that affordability challenges may be pushing lower-end buyers out of the market, or that buyers are simply willing to pay more for premium properties.
Median sale prices increased by 31.38%, moving from $356,995 to $469,012 over the past year. Meanwhile, properties are still selling at 93.6% of their asking prices, which indicates that well-priced properties remain in high demand.
What This Means for Buyers
With inventory increasing and sellers adjusting prices, buyers have more choices and negotiating power. However, competition remains strong in the mid-to-high range ($250,000-$799,999), where demand is concentrated.
- While sellers are dropping prices (-5.75%), sale prices are still rising (27.50%), meaning buyers should be prepared for competitive offers.
- Properties in desirable locations and price points are selling fast; acting quickly on well-priced listings is key.
What This Means for Sellers
With active listings up 55.1% and competition rising, pricing strategies are critical. Sellers who price too high risk sitting on the market longer, while well-priced properties are moving quickly.
- Lower-end properties under $250,000 are struggling. Consider price reductions or upgrades to attract buyers.
- Properties in the $250,000-$799,999 range are selling fastest, but buyers are expecting value.
- Setting a competitive price upfront is more effective than multiple price cuts later.
What This Means for Investors
The increase in listings presents opportunities, but inventory growth could slow price appreciation over time. Investors should focus on mid-to-high tier condos where demand is strongest.
- Rental demand remains high, but growing inventory could impact yields in oversupplied segments.
- Properties selling at 93.6% of list price show buyers are still motivated, despite increasing inventory.
- Timing matters—waiting a few months could mean even better deals if supply keeps rising.
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