The Timothy Real Estate Group recently released sales results for Puerto Vallarta for the first quarter of 2016, compared to that realized in the same quarter of 2015. These statistics are generated by the local real estate association’s FLEX MLS system. Interestingly, the results show that the number of condominium sold is up this year by 19%, over last year, but overall volume is down by 5%. That is reflected in the average sales price for a condo which dropped by 21%. Last year the average sales price in the first quarter of the year was $318,400. This year it was only $251,000.
Did sales prices really drop this much? I suspect that a couple of very high-priced condominium sales took place last year and they threw the numbers off and skewered the average sales price. This can easily happen in a small market where there are not a lot of sales taking place, as $318,400 did seem rather high for the type of activity agents were saying they were obtaining. MLSVallarta reported an average sales price for 2015 of $278,000, which seems more in line with what FLEX reported so far for this year.
The report stated that house sales were up by 9% with sales volume also up by 47%, for the same period.
So condo average prices were down by 21% but homes were up by 35%? Seems a little strange. Houses, however, traditionally make up a smaller portion of the market and average sales prices can easily be thrown off by just one very large high-end home sale. And that was probably the reason for this anomaly.
The Timothy Real Estate Group also reported that they believe “that if the exchange rate for the US dollar against the peso and Canadian dollar were in line with last year’s rates we would have had a blockbuster first quarter.” Well, so far the Canadian dollar is doing a good job of recovering, a very good sign for Canadian prospective buyers and for the overall real estate market. So that missed blockbuster they mention may show up in the fall, if the CAD dollar continues its recovery.