Executive Summary
The Puerto Vallarta land market showed a significant increase in inventory during March 2025, alongside a complex pricing picture. While the number of active listings surged compared to last year, particularly in lower price brackets, sales activity saw only a modest increase. The average sale price rose year-over-year, but the median sale price dropped considerably, suggesting a market shift towards more affordable land parcels influencing the overall statistics.
Key indicators point towards a slower market pace, favouring buyers. The Absorption Rate remains exceptionally high, indicating a large supply relative to demand. Properties are also taking longer to sell (Average DOM increased YoY), and buyers are negotiating significant discounts, as shown by the lower Sale-to-List Price Ratio. This presents potential opportunities for buyers and investors looking for land deals, while sellers may need to adjust pricing expectations and prepare for longer marketing periods.
Market Overview
March 2025 continued the trend of expanding inventory in the Puerto Vallarta land sector. Active Listings jumped to 522, a substantial 104.7% increase compared to March 2024 (255 listings). This surge was particularly pronounced in the under $100,000 price range, which saw a nearly 600% year-over-year increase in active listings. This influx of lower-priced inventory significantly impacts overall market dynamics and average price metrics.
Pended Listings (properties under contract) saw a moderate increase to 8 listings, up 33.3% from 6 in March 2024. However, New Listings entering the market decreased slightly by 17.1% year-over-year (34 vs. 41), suggesting the inventory growth is more from existing properties remaining unsold rather than a flood of brand-new offerings this specific month, although YTD new listings are only down slightly (-3.2%).
Actual Sold Listings for March 2025 came in at 8, a small 14.3% increase from 7 sales in March 2024. Year-to-date, sales are up 6.3% compared to the first quarter of 2024. While sales volume has slightly increased, it hasn't kept pace with the dramatic rise in inventory, leading to a significantly higher Absorption Rate.
Key Market Indicators (March 2025 vs. March 2024)
- Active Listings: 522 (+104.7% YoY)
- Sold Listings: 8 (+14.3% YoY)
- Absorption Rate: 63.92 months (+75.46% YoY) - Indicates a strong buyer's market.
- Average Sale Price: $240,804.25 (+18.44% YoY)
- Median Sale Price: $106,967.00 (-45.72% YoY) - Significant drop, likely due to increased sales of lower-priced land.
- Average DOM (Days On Market): 216 days (+30.12% YoY) - Properties are taking longer to sell.
- Sale to List Price Ratio: 88.2% (Compared to 93.0% for Sale to *Original* List Price Ratio in Apr 2024, data suggests increased negotiation) - Buyers are achieving prices well below the list price.
Pricing Analysis
The pricing landscape for land in March 2025 presents a mixed picture, heavily influenced by the changing composition of inventory. The Average Sale Price saw a healthy increase of 18.44% year-over-year, reaching $240,804. This suggests that while many lower-priced lots sold, there were still some higher-value transactions occurring, or the average is skewed by remaining high-priced listings. The exceptionally high average sale price in December 2024 ($1.4M) appears to be an outlier, likely due to one or very few extremely high-value sales.
However, the Median Sale Price tells a different story, plummeting by 45.72% year-over-year to $106,967. This drastic drop strongly indicates that the bulk of sales activity has shifted towards the lower end of the market. Half of the land parcels sold in March 2025 went for less than $107,000. This divergence between average and median prices highlights the growing inventory and sales activity in the sub-$200k segments.
The Sale to List Price Ratio at 88.2% reinforces the buyer's advantage in the current market. On average, properties sold for nearly 12% below their final asking price, indicating significant room for negotiation.
Sales Activity by Price Range
Sales activity in March 2025 was concentrated heavily at the lowest end of the market. Of the 8 total land sales:
- 4 sales (50%) were in the $0 - $99,999 range. This is a 300% increase from only 1 sale in this range in March 2024.
- 1 sale occurred in the $100,000 - $149,999 range (same as last year).
- There were no sales between $150,000 and $349,999, a significant drop compared to March 2024 which saw sales in these brackets.
- Higher-end sales were sparse, with 1 sale each in the $350k-$399k, $450k-$499k, and $750k-$799k ranges.
Year-to-date figures confirm this trend, with the sub-$150k brackets accounting for 10 out of 17 total sales (59%). Conversely, several mid-to-upper ranges ($150k-$350k, $400k-$450k) show decreased activity YTD compared to 2024. This data clearly illustrates the market's current focus on more affordable land parcels.
Market Trends (Visualized)
The following charts illustrate key market trends over the past 12 months (April 2024 - March 2025), providing a visual representation of inventory levels, sales activity, pricing, and market speed.
Chart 1: Active Listings Trend (Apr 2024 - Mar 2025). This chart shows a clear upward trend in the number of land parcels available for sale over the past year, accelerating significantly in recent months.
Chart 2: Sold Listings Trend (Apr 2024 - Mar 2025). Monthly land sales have fluctuated over the year, with peaks in Sep/Oct 2024, but show no strong upward trend despite the rising inventory. March 2025 saw 8 sales.
Chart 3: Average Sale Price Trend (Apr 2024 - Mar 2025). The average sale price shows considerable volatility month-to-month, influenced by the specific mix of properties sold. Note the significant spike in Dec 2024 and relatively lower prices in recent months (excluding the Dec outlier).
Chart 4: Average Days on Market (DOM) Trend (Apr 2024 - Mar 2025). This chart illustrates the time properties spend on the market. While variable, the trend generally shows longer selling times compared to the middle of last year, aligning with the increased inventory and high absorption rate.
Market Implications
- For Buyers: This is currently a strong buyer's market for land. The high inventory levels, increasing DOM, significantly increased Absorption Rate, and low Sale-to-List Price Ratio indicate considerable choice and negotiating power. Buyers, particularly those interested in lower-priced parcels, have ample opportunity.
- For Sellers: Patience and realistic pricing are key. The market is slow, with high competition, especially in lower price ranges. Sellers should expect longer marketing times and be prepared for negotiations. Accurate pricing based on recent comparable sales (especially considering the falling median price) is crucial. Highlighting unique features of the land will be important to stand out.
- For Investors: The shift towards lower-priced land parcels might present opportunities for strategic acquisition, potentially for future development or land banking. However, the slow absorption rate signals potential challenges in achieving quick returns. Thorough due diligence on location, zoning, and potential appreciation is essential. The divergence between average and median prices warrants careful analysis of specific market segments.
Terminology Glossary
- Active Listings: Properties currently listed for sale.
- Absorption Rate: An estimate of how long it would take to sell all current inventory at the current rate of sales, expressed in months. A high rate indicates a buyer's market (slow sales relative to supply).
- Average List Price: The average price of properties listed for sale during the period.
- Average Sale Price: The average price of properties sold during the period. Calculated by dividing the total dollar volume of sales by the number of properties sold.
- Average DOM (Days On Market): The average number of days properties that sold were listed on the market before a purchase agreement was signed.
- Median List Price: The midpoint price of all properties listed for sale during the period (half are listed for more, half for less).
- Median Sale Price: The midpoint price of properties sold during the period (half sold for more, half for less). Often considered a better indicator of typical market price than the average, as it's less affected by extremely high or low sales.
- New Listings: Properties newly listed for sale during the specified period.
- Pended Listings: Properties for which an offer has been accepted, but the sale has not yet closed.
- Sale to List Price Ratio: The ratio of the final sale price to the final list price when the offer was accepted, expressed as a percentage. A ratio below 100% indicates properties are generally selling for less than their asking price.
- Sale to Original List Price Ratio: The ratio of the final sale price to the original list price when the property first came on the market, expressed as a percentage.
- Sold Listings: Properties whose sales transactions were completed (closed) during the specified period.
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.
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 and Christie Forget on
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