Executive Summary

The Puerto Vallarta house market displayed mixed signals in March 2025. While active inventory continued its upward trend, reaching 674 listings (up 27.7% YoY), sales activity saw a significant slowdown, with only 12 houses sold (down 33.3% YoY). This slowdown contributed to an increase in the Absorption Rate to 28.48 months of inventory.

Pricing also showed volatility. Although the year-to-date Average Sale Price is significantly higher than last year (+21.25%), March saw a notable drop compared to March 2024, with the Average Sale Price falling to $507,199 (-12.46% YoY) and the Median Sale Price dropping sharply to $261,212 (-47.86% YoY). Properties took longer to sell, with the Average Days on Market (DOM) increasing to 220 days (+38.36% YoY). The market appears to be shifting, favoring buyers slightly more than in previous months, though overall inventory remains substantial.

Market Overview

Over the past 12 months (April 2024 - March 2025), the Puerto Vallarta house market has seen a steady increase in the number of Active Listings, growing from 542 in April 2024 to 674 in March 2025. This expanding inventory suggests more options for potential buyers. New listings have fluctuated month-to-month, with notable peaks in November 2024 (109) and January 2025 (102), but a dip in March 2025 (47).

Sales volume (Sold Listings) has been relatively low compared to the available inventory throughout the year, generally ranging between 14 and 37 sales per month. March 2025 marked a low point with only 12 sales, contrasting sharply with the 31 sales seen in February 2025 and 18 sales in March 2024.

Pricing trends have been less consistent. The Active Average List Price has remained high, generally hovering around the mid-$900,000s to just over $1 million. However, the Sold Average Sale Price has shown significant monthly variability, ranging from $378,949 (Nov 2024) to $873,686 (Feb 2025). March 2025's average sale price of $507,199 sits at the lower end of this recent range. This disparity between list and sale prices, along with increasing Average DOM (reaching 329.6 in Jan 2025 before settling to 220 in March), indicates a market where sellers' expectations may not always align with buyer willingness or capacity, leading to longer selling times and potential price negotiations.

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Key Market Indicators (March 2025)

Here's a snapshot of the key performance indicators for the Puerto Vallarta house market in March 2025, with comparisons:

Active Listings: 674 (Up 27.7% vs. Mar 2024)
Sold Listings: 12 (Down 33.3% vs. Mar 2024)
Average Sale Price: $507,199.25 (Down 12.46% vs. Mar 2024)
Median Sale Price: $261,211.50 (Down 47.86% vs. Mar 2024)
Average DOM (Days on Market): 220 days (Up 38.36% vs. Mar 2024)
Absorption Rate: 28.48 months (Up 14.61% vs. Mar 2024, indicating a slower market)
Sale to Original List Price Ratio: 92.6%
Sale to List Price Ratio: 94.3%

Year-to-Date (YTD) Comparison (2025 vs. 2024):

Sold Listings YTD: 61 (Up 48.8% vs. 2024 YTD)
Average Sale Price YTD: $710,055.98 (Up 21.25% vs. 2024 YTD)
Median Sale Price YTD: $427,500 (Up 6.88% vs. 2024 YTD)
Absorption Rate YTD: 29.80 months (Up 23.19% vs. 2024 YTD)
Average DOM YTD: 256 days (Up 26.73% vs. 2024 YTD)

While March 2025 showed a slowdown, the year-to-date figures still indicate more sales activity and significantly higher average sale prices compared to the first quarter of 2024. However, the consistently increasing DOM and Absorption Rate across both monthly and YTD comparisons point towards a market with growing inventory that is taking longer to sell.

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Pricing Analysis

March 2025 presented a complex pricing picture for Puerto Vallarta houses. The Average List Price for active listings remained high at $995,598, a 5.55% increase compared to March 2024. This suggests continued confidence among sellers, particularly at the higher end of the market, reflected in the substantial number of active listings priced above $1 million.

However, sale prices told a different story in March. The Average Sale Price decreased significantly to $507,199 (-12.46% YoY), and the Median Sale Price saw an even steeper decline to $261,211 (-47.86% YoY). This large drop in the median suggests that the few sales occurring in March were concentrated in the lower price brackets (verified in the sales activity section). The disparity between the high average list price and the much lower average/median sale prices indicates a potential gap between seller expectations and market realities for March.

The Sale to List Price Ratio was 94.3%, while the Sale to Original List Price Ratio was 92.6%. This implies that while sellers achieved prices relatively close to their *final* asking price, there might have been price reductions from the *original* listing price before the sale occurred, aligning with the increased DOM.

Despite the March dip, the YTD Average Sale Price ($710,056) remains strong, up 21.25% compared to YTD 2024, boosted by stronger sales in January and February, particularly February's high average sale price ($873,686).

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Sales Activity by Price Range

Analysis of sales by price range reveals where market activity was concentrated in March 2025:

Below $350,000: This segment saw the most activity, accounting for 6 of the 12 total sales (50%). This included 2 sales between $100k-$150k, 3 sales between $150k-$200k, and 1 sale between $200k-$250k. Year-to-date, this lower range ($0-$349k) represents 23 out of 61 sales (37.7%).
$350,000 - $999,999: Activity was sparse in March, with only 2 sales: one between $400k-$450k and one between $700k-$750k. This contrasts with YTD figures where this mid-range accounts for 22 sales (36%).
$1,000,000+: March saw only 1 sale in the $2M-$3M range. However, year-to-date, the luxury market ($1M+) has been relatively active, accounting for 12 sales (19.7%), a significant increase from only 3 sales in this bracket during the same period in 2024.

Comparing March 2025 to March 2024, there was a notable shift away from the mid-range ($250k-$1M), which saw 8 sales last year but only 2 this March. Sales below $250k were comparable (6 this year vs 5 last year), while the $1M+ segment had 1 sale this March vs 3 last March.

The distribution of Active Listings in March 2025 shows significant inventory across all price points, with particular concentrations in the $200k-$300k range (97 listings), $550k-$700k (104 listings), and notably, $1M+ (174 listings). The high inventory in upper brackets compared to the low sales volume in March suggests buyers in these segments may be exercising more caution or negotiating power.

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Market Trends (Visualized)

The following charts illustrate key market trends for Puerto Vallarta Houses over the past 12 months (April 2024 - March 2025):

Chart 1: Active vs. Sold Listings. This chart shows the trend of available inventory (Active Listings) compared to the number of actual sales (Sold Listings) each month. Note the widening gap, indicating inventory growth outpacing sales, particularly in recent months.

Chart 2: Average List Price vs. Average Sale Price. This chart tracks the average asking price of homes on the market against the average price they ultimately sold for. Observe the relative stability of high list prices versus the volatility in actual sale prices month-to-month.

Chart 3: Average Days on Market (DOM). This chart illustrates the average time properties spent on the market before selling. The general upward trend, despite monthly fluctuations, suggests a market where sales cycles are lengthening.

Chart 4: Absorption Rate (Months of Inventory). This chart shows how many months it would theoretically take to sell all active listings at the current sales pace. The increasing trend reflects the growing inventory and slower sales rate observed in March 2025.

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Market Implications

Based on the March 2025 data and recent trends:

For Buyers: The growing inventory and increased Days on Market present potential opportunities. Buyers have more choices and potentially more negotiating leverage, especially compared to previous tighter market conditions. The dip in March's average/median sale prices might signal softening in certain segments, though YTD prices are still up. Patience and careful negotiation could yield favorable results. However, competition may still exist for well-priced, desirable properties.
For Sellers: The market requires strategic pricing and patience. With more competition (higher inventory) and longer selling times (higher DOM), overpricing can lead to extended periods on the market. Preparing the property well and understanding current comparable sales is crucial. While list prices remain high, the March sales data suggests sellers may need to be more flexible on price or terms to secure a sale, especially given the lower Sale-to-Original-List-Price ratio.
For Investors: The market presents mixed signals. While YTD average prices show strong appreciation compared to last year, the March slowdown and high inventory levels warrant caution. Potential opportunities might exist in lower price brackets where sales volume was highest in March, or for acquiring properties that have been on the market longer and may offer better negotiation potential. Understanding specific neighborhood trends and price points is key. The luxury segment ($1M+) shows strong YTD sales growth but slowed in March, requiring careful analysis.

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Terminology Glossary

Absorption Rate: The rate at which available homes are sold in a specific market during a given time period. Calculated by dividing the total active listings by the number of sold homes in a month. It's typically expressed as "months of inventory." A high number means a slower market.
Active Listings: The total number of properties available for sale at the end of a given period (e.g., end of the month).
Active Average List Price: The average asking price of all properties currently listed for sale.
Average DOM (Days on Market): The average number of days from when a property is listed until it goes under contract (pending sale).
New Average List Price: The average list price of homes that were newly listed on the market during the specified period.
Pended Average List Price: The average list price of homes for which an offer was accepted during the specified period.
Sold Average List Price: The average *list* price (at the time of sale) of homes that were sold during the specified period.
Average Sale Price: The average price at which properties actually sold during the specified period. Calculated by dividing the total dollar volume of sales by the number of homes sold.
Median Sale Price: The price point at which half of the homes sold for more and half sold for less during a given period. It's often considered a better indicator of typical market prices than the average, as it's less affected by very high or very low sales.
New Listings: The number of properties put on the market during the specified period.
Pended Listings: The number of properties for which sellers accepted an offer during the specified period, but the sale has not yet finalized (closed).
Sale to List Price Ratio: The final sale price divided by the last list price (before the sale), expressed as a percentage. A ratio close to 100% indicates homes are selling near their asking price.
Sale to Original List Price Ratio: The final sale price divided by the *original* price the property was listed at, expressed as a percentage. A lower percentage compared to the Sale-to-List Price Ratio suggests price reductions occurred during the listing period.
Sold Listings: The total number of properties that completed the sale process (closed escrow) during the specified period.
YTD (Year-to-Date): A period starting from January 1st of the current year up to the end of the period being reported (e.g., January 1st, 2025 to March 31st, 2025).

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Considering Buying or Selling?

Navigating the current Puerto Vallarta real estate market requires up-to-date information and expert guidance. Whether you're looking to buy your dream vacation home, sell your property effectively, or make a strategic investment, understanding these trends is vital. Contact Mexico Life Realty today for a personalized consultation and strategy session.

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Disclaimer: This report is based on data from the local MLS for the specified period and property type. Market conditions can change rapidly. This information is intended for educational purposes and should not be considered financial or investment advice. Always consult with a Mexico Life Realty professional before making Mexico real estate decisions.

Posted by John Forget on April 1st, 2025