In the United States and in Canada, Covid has not effected real estate sales. Matter of fact some markets are showing excellent numbers. But in Puerto Vallarta and Riviera Nayarit, which is very much a tourism real estate market, if tourists can’t get to the destination, it’s hard to sell them real estate.
This year started off rather well, showing sales in January and February close to past years in 2019 and 2018, down just about 10%. And that’s not bad, considering that the two previous were excellent years. But as we went into March sales started falling off significantly. Since April sales have been down about 40%, although Realtors say that it is now improving and expect somewhat of a recover in the fall. Sales volume is off as well, was down 40% compared to the two previous years.
Market conditions are good, pricing is good, what is not is air lift, the ability to get people to Vallarta in a consistent manner. Countries, and airlines, are still working through this.
Out at the end of the bay, Punta Mita is seeing spectacular numbers, the best they’ve had in years. And it is primarily being driven by the national market, upwards of 80% of sales are to Mexicans. And this is for a few reasons.
First, just like everywhere else in the world, people are tending to stay closer to home, or at least within their own country so they don’t have to deal with open or closed borders. It’s the same for Mexico. Secondly, in the past many Mexicans have enjoyed a vacation home in the U.S., but with the country tightening its immigration laws and rules, many have begun to look elsewhere, starting within their own country. And thirdly, real estate in Punta Mita, and along the coast of Riviera Nayarit and Puerto Vallarta, is sold in U.S. dollars. And with the peso losing value, buying real estate here is safe place for Mexicans to park their money, locking it in to U.S. dollars, and not lose to a devaluing peso. This is something they can’t do in the rest of the country.
That trend will mostly like continue, and American and Canadians will be back, just as soon as the world figures out how to handle the Covid virus. Right now, like everywhere else, when is completely up in the air.