Is 2024 the perfect time to invest in Puerto Vallarta and Riviera Nayarit?

Reflecting on the real estate market trends during the last quarter, a significant development stands out: a notable increase in inventory. Data collected from FlexMLS Vallarta-Nayarit reveals a remarkable surge in available properties in this segment of the market. Let’s dive into the implications of this inventory surge and how it has influenced buyer demand.

The data indicates a substantial increase in inventory levels of 1 and 2-bedroom condominiums. Compared to the 2023 first quarter, the number of condos for sale has increased by 105.26%.

Despite the increase in inventory, demand has remained relatively stable throughout the quarter. Buyer activity, measured by metrics such as pending sales and closed transactions, has shown resilience in the face of increased supply. However, while demand has remained solid, there are signs that buyers are exercising greater caution and deliberation in their purchasing decisions.

Pricing and Market Balance

The increase in inventory has had a modest impact on pricing dynamics in the market. While median sales prices have remained relatively stable, there has been a slight increase in the number of price reductions as sellers adjust their pricing strategies to attract buyers in a more competitive environment.

Additionally, the recent market activity paints a picture of resilience: 26 condos were sold in the last 3 months, with 40 pending sales. The average sale price in 2024 is $438,000 USD, compared to $361,325 USD in 2023, while the average active list price stood at $484,400 USD in 2024.

Conclusions

Prices have surged by 17.5% from 2023 to 2024, highlighting the need for flexibility and awareness in navigating the market.

For buyers, the increase in inventory presents a welcome opportunity to explore a wider range of options and potentially negotiate more favorable terms. However, intensified competition among sellers requires careful consideration.

Sellers, on the other hand, must be strategic in pricing their properties competitively and leverage effective marketing tactics to stand out in a saturated market. While the increase in inventory provides more options for buyers, sellers who differentiate their listings and showcase the unique features of their properties can still attract motivated buyers.