Executive Summary
The Romantic Zone condo market showed signs of stabilization mixed with increased inventory in March 2025. While the number of active listings (184) saw a significant 37.3% increase compared to March 2024, sales activity remained modest with 11 units sold, just slightly up from 10 the previous year. The Average Sale Price saw a small year-over-year gain (+3.04%), reaching $619,818, but the Median Sale Price experienced a notable drop (-10.91%) to $490,000, suggesting a shift in the types of properties selling compared to last March.
Year-to-date figures paint a slightly different picture, with total sales up 30% compared to 2024 YTD, and both Average (+10.92%) and Median (+13.89%) Sale Prices showing stronger gains. However, properties are taking slightly longer to sell (Average DOM is 142 days YTD, up 2.9% from 138 days YTD 2024). The market remains active, particularly with pending sales (+90% YoY for March), but the increased inventory and slower sales pace (lower Absorption Rate) indicate a shift towards a more balanced environment compared to the previous year.
Market Overview
March 2025 continued the trend of growing inventory in the Romantic Zone condo market. With 184 Active Listings, the supply is considerably higher than the 134 seen in March 2024. This increase provides buyers with more options but also suggests a potential cooling from the peak seller's market conditions of previous years. New listings also saw a robust increase (+43.5% YoY), with 33 new condos entering the market in March.
Sales volume for March was modest at 11 units, a slight increase from 10 units last year. However, Pended Listings surged to 19, a 90% increase YoY, indicating strong buyer activity that hasn't fully translated into closed sales for the month yet. This suggests potential for higher closed sales numbers in the coming months.
Pricing dynamics show a mixed signal. The Average Sale Price increased slightly YoY for March, but the Median Sale Price decreased significantly. This divergence often indicates fewer sales occurring at the very top end of the market during the specific month compared to the previous year, while the broader market holds value. Year-to-date, however, both average and median prices are up substantially, reflecting overall appreciation.
The Absorption Rate dropped to 19.03 months of inventory (down -15.98% YoY), indicating a slower sales pace relative to the available inventory compared to last year. Similarly, the Average DOM, while slightly lower for March itself (140.9 days, -4.76% YoY), is slightly higher year-to-date (142 days), confirming that properties are taking a bit longer to go under contract on average in 2025 so far.
Key Market Indicators (March 2025 vs. March 2024)
- Active Listings: 184 (+37.3% YoY)
- New Listings: 33 (+43.5% YoY)
- Pended Listings: 19 (+90.0% YoY)
- Sold Listings: 11 (+10.0% YoY)
- Average List Price: $629,401 (-1.94% YoY)
- Average Sale Price: $619,818 (+3.04% YoY)
- Median Sale Price: $490,000 (-10.91% YoY)
- Average DOM: 140.9 days (-4.76% YoY reduction in time)
- Absorption Rate: 19.03 months (-15.98% YoY decrease, indicating slower relative sales pace)
- Sale to List Price Ratio: 97.0% (Slightly lower than 97.3% in Dec 2024, indicating slightly more negotiation)
Year-to-Date (2025 YTD vs 2024 YTD):
- Sold Listings: 26 (+30.0% vs 20)
- Average Sale Price: $621,853 (+10.92% vs $560,612)
- Median Sale Price: $563,210 (+13.89% vs $494,500)
- Average DOM: 142 days (+2.90% vs 138 days - slower)
- Absorption Rate: 18.20 months (-24.67% vs 24.16 months - slower relative pace)
Pricing Analysis
March 2025 presented contrasting pricing signals for Romantic Zone condos. The Average Sale Price edged up slightly to $619,818, a 3.04% increase from March 2024. However, the Median Sale Price saw a significant decrease of 10.91% year-over-year, landing at $490,000 compared to $550,000 last March. This divergence suggests that while the overall dollar value of sales was slightly higher, the mix of properties sold likely skewed towards lower price points compared to March 2024, which saw three sales in the $850k-$899k range versus zero this March.
Looking at the year-to-date data provides a clearer picture of overall appreciation. For the first quarter of 2025, the Average Sale Price is up a healthy 10.92% compared to the same period in 2024, and the Median Sale Price shows an even stronger gain of 13.89%. This indicates that despite the monthly fluctuation observed in March, the underlying trend for condo values in the Romantic Zone remains positive for the year so far.
Sellers received an average of 97.0% of their final asking price in March (Sale to List Price Ratio), which is strong but slightly down from peaks seen in late 2024, suggesting buyers may have slightly more room for negotiation amidst the increased inventory.
Sales Activity by Price Range (March 2025)
Activity in March spanned a wide range of price points, reflecting the diverse offerings within the Romantic Zone.
- Sold Listings (11 Total): Sales were distributed across several brackets: two sales between $300k-$349k, one $350k-$399k, two $400k-$449k, one $450k-$499k, two $550k-$599k, one $600k-$649k, one $700k-$749k, and one notable sale above $1.5M. Compared to March 2024, there was less activity at the very high end (specifically $850k+) this year, contributing to the lower median price.
- Pended Listings (19 Total): Pending activity was strong and suggests future closings across various price points. Notable concentrations include the $400k-$499k range (6 listings combined) and the $750k-$899k range (5 listings combined). There were also two pending sales above $1.5M. This high pending count, significantly up YoY, signals continued buyer demand.
- Active Listings (184 Total): Inventory remains highest in the mid-ranges, particularly $300k-$499k (69 listings total) and $750k-$799k (14 listings). However, there is substantial inventory across most price points up to $2M, offering buyers significant choice.
- New Listings (33 Total): New inventory added in March included a significant number of higher-priced condos, with 10 listings priced at $1M or above. The $400k-$449k range also saw a boost with 7 new listings.
The data indicates robust activity in the $400k-$500k range for active, pending, and new listings. While sales were spread out, the strong pending numbers, especially in mid-to-upper ranges, suggest the market dynamics remain complex, with demand present across different price tiers despite increased overall inventory.
Market Trends (Visualized)
The following charts illustrate key trends in the Romantic Zone condo market over the past 12 months (April 2024 - March 2025).
This chart shows the monthly fluctuation in Active Listings versus Sold Listings. Note the general upward trend in Active Listings throughout late 2024, peaking near year-end, and remaining elevated in early 2025. Sold listings show more variability month-to-month.
This chart tracks the Average Sold Price per month. Observe the volatility, with notable peaks and valleys, but the overall trend suggests relative price stability with recent YTD gains noted earlier.
This chart illustrates the Average Days on Market (DOM). While there are monthly fluctuations, the trend line indicates that properties took longer to sell, particularly in the latter half of 2024, stabilizing somewhat in early 2025 but remaining above levels seen in early 2024.
This chart compares the number of sold listings by price range between March 2025 and March 2024. It highlights the shift in sales distribution, notably fewer sales in the $850k+ range in March 2025 compared to March 2024, and increased activity in the $400k-$449k and $550k-$599k brackets this year.
Market Implications
Based on the March 2025 data for Romantic Zone condos:
- For Buyers: The increased inventory offers more choices and potentially more negotiating power compared to the past few years. The drop in the March Median Sale Price might signal opportunities, although YTD prices are still rising. Buyers should be prepared for properties taking slightly longer to close (higher YTD DOM) but can benefit from comparing a wider selection of listings. The surge in pending sales indicates competition is still present, especially for well-priced properties.
- For Sellers: With more competition (higher inventory) and a slightly longer time on market, accurate pricing is crucial. While YTD appreciation is positive, the high inventory and slower absorption rate mean sellers need realistic expectations regarding pricing and timelines. Highlighting unique features and ensuring excellent property presentation are key. The strong pending sales activity is encouraging, showing underlying buyer interest remains.
- For Investors: The Romantic Zone remains a highly desirable area. While short-term flips might face challenges due to longer DOM and increased inventory, the long-term appreciation potential appears intact based on YTD price growth. Investors should carefully analyze specific price segments and property types, considering the rental income potential in this popular tourist zone. Monitoring the absorption rate and inventory levels in specific desired price brackets is advised.
Terminology Glossary
- Active Listings: Properties currently listed for sale.
- Absorption Rate: An estimate of the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. It represents the number of months it would take to sell the current inventory.
- Average DOM (Days on Market): The average number of days between a property being listed and an offer being accepted.
- Average Sale Price: The sum of all sale prices divided by the number of sales. Can be influenced by a few very high or low sales.
- Median Sale Price: The price at which half the properties sold for more and half sold for less. Often considered a better indicator of typical market value than the average.
- New Listings: Properties newly listed for sale during the month.
- Pended Listings: Properties for which an offer has been accepted, but the sale has not yet closed. Indicates current buyer activity.
- Sale to List Price Ratio: The final sale price divided by the last list price, expressed as a percentage. Indicates negotiation levels (below 100% suggests negotiation, above 100% suggests bidding wars).
- Sold Listings: Properties that have successfully closed transaction during the month.
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 Forget on
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