During the first part of this special article, the Vallarta Real Estate Guide team offered a review of the behavior of the real estate industry in Vallarta · Nayarit during the first six months of this year, as well as some of the main reasons buyers have maintained an interest in our destination throughout 2020 and well into 2021. For this second and last part, Aaron Fisher, co-founder of MexHome; Taniel Chemsian, senior sales associate at Timothy Real Estate Group; and Wayne Franklin, president of Tropicasa Realty; share their initial sales volume figures for 2021. They also discuss some of the trends and new market segments that are already emerging in our region.
AMPI MLS Figures
“Currently, the real estate market in Puerto Vallarta and Riviera Nayarit is very active and incredibly strong,” says Wayne Franklin. Here, he shares some general sales volume statistics gathered from the MLS (Multiple Listing Service) of AMPI (Mexican Association of Real Estate Professionals):
“2019 was one of the strongest years we have had in recent memory as total Flex MLS sales volume exceeded 834 million USD. For the period from January to May of that same year, there were more than 269 million USD in sales.”
In addition, the president of Tropicasa Realty confirms that, although the market suffered in 2020, the sales volume exceeded 680 million USD, which represented a general drop of 18 percent. For the period from January to May of that same year, there were more than 211 million USD in sales.
“2021 has recovered remarkably. To date, there have been 358 million USD in sales for the period from January to May, which represents an increase of 33 percent compared to those months of 2019. Particularly, in our office, we have already sold more than we did in all of 2020, and we are fast approaching full 2019 sales volume.”
Our expert notes that the high-end luxury market is also extremely strong and in recovery mode right now. In 2019, there were 37 sales between one and two million dollars each, as well as 15 sales of more than two million dollars. In 2020, there was a 50 percent cut in sales in that category, with only 19 sales between one and two million dollars and six sales above two million dollars. The recovery is evident in this year’s numbers. “However, so far, from January to May 2021, there have been 35 sales between one and two million dollars and five sales of more than two million dollars,” he concludes.
New Market in Vallarta · Nayarit: The Digital Nomads
“I would say that 2019 was an incredible year for all of us involved in Banderas Bay real estate. And while we were quite nervous about 2020, it looks like 2021 is going to be a lot more active,” says Aaron Fisher.
“There are so many foreigners who are able to work remotely, and the pandemic only made this trend stronger. In addition, Mexico has greatly improved its digital infrastructure, which makes it easier for remote workers to come here. I see many people who are making the decision to leave their hometowns and pursue a lifestyle that they dream of achieving without waiting until retirement to do so. We are also seeing a large increase in international digital nomads in some of our boutique markets such as Sayulita and Bucerías. So, I estimate we will see additional growth in this trend and the real estate market in both Puerto Vallarta and Riviera Nayarit will be busier than ever.”
Similarly, with the vaccine administration programs in both the United States and Canada well underway and increased flights coming to our destination, the co-founder of MexHome believes that, after such a long period of confinement and now a potential rebound in their economies, the people of those countries will have more desire to travel, which could lead to a new level of demand for real estate in this region.
“It is possible that developers will have a difficult time keeping up with the perceived high demand, and they will need to build responsibly in order to provide the best possible homes and information to their buyers, who will be able to make more researched purchasing decisions,” Fisher concludes.
A Dynamic Future
“Although in 2020 many of us thought that a recession was coming similar to the one of 2008, the present state of the real estate industry in the region looks very dynamic,” says Taniel Chemsian.
“At the end of March, I decided to look at my sales value in dollars, that is, take a look at the numbers for the first quarter of 2021. My surprise was to discover that in those first three months I had already exceeded my total sales for the year 2020. As this is something that the other agencies in the destination are experiencing in a similar way, we believe that the market is recovering and will continue to do so.”
In relation to this, Chemsian shares some figures that summarize last year and demonstrate the promising future that is looming for the remainder of 2021: “Personally, my average sale price during 2020 was around 410,000 USD. So far this year, this median sales price has risen to 440,000 USD, which is an increase of at least 30,000 USD from last year. So, if a similar upward trend continues, it’s an indicator that the real estate market in Puerto Vallarta and Riviera Nayarit will remain very busy—with property values and sales prices rising—for the next few months,” he explains.
Chemsian agrees with Fisher that people have embraced different technologies, and companies are changing the way they employ people, which allows them to work from home—or anywhere, whether or not they are in a global pandemic. Therefore, they are making decisions to move to more affordable places, such as Vallarta · Nayarit, which represents a paradise for many of them: “Several current buyers are in their late 20s and early 30s,” Chemsian says. “Our buyers are no longer just baby boomers or retirees, as they used to be. They are young people who may not have all the dollars in the bank to be able to buy a property in cash, but who use financial instruments to realize their dream of living in this corner of the Mexican Pacific.”
With practically half of the year 2021 ahead, the real estate industry of our destination is in a recovery that will bring with it new markets and figures that are closer to surpassing the top sales records ever registered.