Activity dropped significantly in third quarter of this year for the Puerto Vallarta and Riviera Nayarit real estate markets. Sales volume was down 30% compared to the previous quarter and down 20% compared to the third quarter of 2021. Although Realtors report that activity has slowed down, much of this drop they say can be attributed to the fact that inventory levels are at historically low levels - there’s demand but not enough supply of properties on the market. They report having lists of clients interested in buying, when the right property comes on the market. Some of this needed inventory will be provided by the many real estate developments that are currently under construction.
But going forward, there is also concern about the real estate slowdown currently taking place both in the United States and Canada. Equity in primary homes in these markets is what has traditionally provided the funds needed to buy a second home in Mexico where mortgage rates can be quite high. Many properties are bought in Vallarta, at least in the low-to-middle price range, with cash from refinanced properties back home. But with rates now rising north of the border, many markets are experiencing a slowdown in activity and falling prices.
