FEB 2025 - Puerto Vallarta & Area MLS House Market Report

Published: March 1, 2025

TL;DR

The Puerto Vallarta house market is seeing a shift toward a buyer's market with a 30.0 absorption rate and an increasing number of active listings. The average sale price has risen to $898,406.42, reflecting continued demand for higher-end properties. However, the average days on market (DOM) has increased to 197.1 days, indicating that homes are taking longer to sell. Sellers are adjusting by reducing list prices, yet buyers are still paying 93.1% of asking prices, showing ongoing market activity.

Buyers: Increased inventory means more options, but high-end demand remains strong.
Sellers: Pricing adjustments are key to competing in a market with longer DOM.
Investors: Luxury and mid-tier homes are performing best; timing is critical.

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 house market.

Key Market Trends (March 2024 - February 2025)

The Puerto Vallarta house market is experiencing a shift toward a buyer's market, but demand remains strong in the luxury and mid-tier segments. Here’s what’s happening:

Absorption Rate: Stands at 30.0 in February 2025, signaling growing inventory and increased buyer leverage.
Average List Price: Adjusted to $1,026,435.57, showing price stabilization.
Average Sale Price: Increased to $898,406.42, reflecting ongoing demand for quality homes.
Average Days on Market (DOM): 197.1 days, indicating properties are taking longer to sell.

While the increase in inventory gives buyers more negotiating power, the strength in high-end home prices shows that desirable properties are still selling well. However, homes that are not competitively priced are sitting on the market longer, forcing sellers to make price reductions. New listings are flooding the market at a rate outpacing sales, which could lead to further price corrections in the coming months.

Another key factor is the sale-to-list price ratio, currently at 93.1%. This indicates that while buyers are negotiating discounts, well-priced properties are still closing at competitive numbers. Investors and sellers should monitor this metric closely, as it provides insights into overall market sentiment.

Luxury properties continue to be in high demand, with a noticeable concentration of sales in the $750,000-$1,500,000 range. Meanwhile, lower-end properties are experiencing longer days on market, with buyers shifting their focus toward larger or better-located homes.

What This Means for Buyers

With rising inventory, buyers now have more negotiating power, but well-priced homes still sell quickly in the higher-end market.

The increase in DOM suggests patience could yield better deals, especially for motivated sellers.
Luxury homes continue to command strong prices, making timing crucial for buyers looking at high-end properties.
Buyers should monitor price adjustments and be ready to act quickly when they find a well-priced property that meets their needs.

What This Means for Sellers

With houses spending more time on the market, sellers must price competitively and highlight property value. Buyers now have more options, which means sellers need to work harder to make their properties stand out.

Pricing strategy is key: Overpriced homes risk extended market time.
Luxury properties are still performing well, but buyers are looking for value.
Sellers should consider staging, renovations, or incentives to attract more interest in a competitive environment.
New listings are increasing rapidly, meaning more competition. Sellers must be prepared to adjust pricing if needed to remain competitive.

What This Means for Investors

Despite longer selling times, sale prices remain strong, especially in the luxury and mid-tier segments. Investors should pay close attention to pricing trends and absorption rates.

High-end homes continue to sell, making them a viable investment opportunity.
Growing inventory means potential price corrections, making this a good time to watch for deals.
Rental yields in the Puerto Vallarta area remain strong, and properties that cater to vacation rental markets are still in demand.
Given the extended DOM, long-term investors should focus on high-demand areas where appreciation potential remains high.