Did you know, the housing sector in Mexico overall, is showing signs of greater sustainable momentum in 2018. But, especially so in the metro Puerto Vallarta area. These Puerto Vallarta real estate market trends seem to be underpinned, by robust economic growth.
Puerto Vallarta Real Estate Market Trends, Facts, Statistics
In addition, improved labor market conditions for the Mexican people, help greatly. Together with, record low borrowing costs. Hundreds of retiring ‘baby-boomers’ are seeking a warmer climate. Of course, they also want safe refuge in their older age. All these factors combined, create and instill greater confidence. Puerto Vallarta real estate market trends and economy are strengthened and bolstered.
For many consecutive months now (at the time of this writing), Puerto Vallarta real estate market trends and residential construction has increased, year to year. Currently, it is up 6.4% year to date. Thus, dramatically outperforming overall GDP growth. Furthermore, the Pena government is gone. The new one elected on July 1, 2018, promises even more robust economic growth and stability.
Says Puerto Vallarta Survey
This new pickup in the Puerto Vallarta real estate market trends, follows roughly four years (2012, 2013, 2014, 2015) of declining investment. And, 2 years of stagnancy (2016, 2017). Hence, factors like this one, were brought about in part from the financial default. Several major property developers, including Michel and David Gaucher’s Hole In One, went belly up in the metro Puerto Vallarta area. Thus, resulting negative impact like this, takes time to heal.
Puerto Vallarta Mexico’s mortgage credit growth is also accelerating at a very healthy rate. In addition, very attractive residential and commercial bank loan mortgages are now available. Primarily, these are for households. Also, investors with established credit history and higher incomes. Interestingly, they’ve increased by a whopping 10%, year to date. This is an amazing gain for the previously embattled Puerto Vallarta real estate market.
Surveys Indicate Plenty of Promise In Puerto Vallarta
In support, a very recent wide-reaching and comprehensive Puerto Vallarta real estate market survey was done by Coastal Living Magazine. Among the conclusions, metro Puerto Vallarta real estate is among the 3 top places globally, investors should be looking to invest money. That’s notable, considering all the international real estate choices.
But that’s not all. International Living Magazine says the Puerto Vallarta area is among the top places on the globe, to live too. Like that is not enough, to retire also! Of particular importance, expected forecasts based upon reliable and predictable factors, are that for the next 15 to 20 years, Puerto Vallarta real estate market remain very promising. Hence, the prudent buyer is jumping on board, while prices remain affordable.
Additionally, a retiring baby-boomer crowd, will cause continued growth at an exponential rate. Particularly noteworthy, over 1 million Americans reside part or full-time in Mexico. Many of those in the metro Puerto Vallarta area. Canadians rank a very close second.
National Housing Commission Adds Stimulus
Equally important, new lending by the Institute of the National Housing Fund for Workers, surged. It’s up by over 30% from the same previously measured period of time. This, according to the National Housing Commission (Conavi). Furthermore, Infonavit, which is publicly-owned and geared toward the lower-income households, accounts for the largest portion of the mortgage market in Mexico. This solidification, in not only the Puerto Vallarta real estate market, but in real estate activity throughout Mexico, has been supported by considerable initiatives.
Initially, such initiatives came from the public-sector, started by the Pena Government. Referenced projects are targeted toward the prodding of new urban residential development. Broadening the access to mortgage lending for everyone who qualifies, aids this acceleration. Thus, the Puerto Vallarta real estate market trends for the area, and likely the large majority of Mexico overall, are very encouraging.
Mexican Government Contributes to Puerto Vallarta Market
In addition, the Mexican government’s National Housing Policy, announced investment targets of 370 billion pesos. In January 2016, this was allocated for the construction of 500,000 new homes in Mexico. This initiative is aimed to bridging a large housing gap. Previously, it was affecting over one quarter, of all households in existence. Similarly, the government announced an increase in the housing subsidy program. This of course, also brightens the Puerto Vallarta real estate market. On both the domestic, and the global stage.
It’s projected to surge, from the initially allotted 8.4 billion pesos, to 11.1 billion pesos. Targeting, is largely toward new home financing. Approximately, 6 billion Mexican Pesos of subsidy has already been dished out, up to the end of June 2015. This factor alone, supercharges the Puerto Vallarta real estate market. Trends and stats say, it is because of all the favorable factors there.
Mortgage Reforms Play a Key Role in PV Real Estate
Recent mortgage reforms made to the market, from both Government and private sector, highlight extended loan terms. Hence, increased borrowing limits and government guarantees on construction loans procured by consumers, bolster the efforts. Likewise, Infonavit currently pilots a program to convert a wide variety of inflation-linked mortgages to fixed-principal loans. Thus, the residential sector, particularly the demand for new homes, is also benefiting.
Also, dramatic improvement is evident in the labor market. Moreover, perks, conditions, benefits and the like are improving, almost daily. A key driver for the household credit requirement, has increased by well over 4% in 2016, through the end of June. Due primarily, to formal sector employment.
An URBREG Mexico Snapshot of the Real Estate Market
All this, is very encouraging news indeed. Overall Puerto Vallarta real estate market trends appear very favorable. The dramatic improvement trend, echoes from a combination of additional factors. Strengthened labor demand, in conjunction with the Mexican government’s initialization of the newly introduced ‘Job Formalization Program’, heighten confidence.
These jointed factors, will undoubtedly lead to an increase in the number of creditworthy domestic borrowers. Also, very attractive for Puerto Vallarta real estate trends. Greater stimulation of more foreign investment, is bound to prevail as well.
Low Unemployment In Mexico Contributes Favorably to Puerto Vallarta Market
As at the end of June 2017, jobless rates in Mexico hovers around 4.5%. Its lowest level in nearly seven years! Hence, another contributing factor, to very encouraging Puerto Vallarta real estate market trends. And, for Mexico overall.
Of particular importance, safe and secure tourist destinations such as Puerto Vallarta are the benefactors. Thus, all surrounding suburb communities benefit greatly too. Examples, are Nuevo Vallarta, Bucerias, Sayulita, La Cruz, Punta de Mita. As well as, most other areas of Bahia de Banderas, and Riviera Nayarit. Concentrated focus on the major purchasing intentions segment, has caused consumer confidence to surge. It’s considerably higher that it has in almost a decade. Very accommodating monetary policy settings, have also bolstered the affordability. Mexican residents, and the foreign investment sector alike, seek and need this, most.
Furthermore, the Bank of Mexico has maintained its benchmark interest rate. A historic low of just 3.0%. From earlier in 2014 to present, this also stimulates the Puerto Vallarta real estate market. Mortgage rates have continually moved lower for the past year now. Alongside, reduced risk premia, as well. Hence, a stern increase in competition among private sector lenders, puts downward pressure on rates, for loaned money. Both from banks and private lenders.
Short-term Humps and Bumps in Puerto Vallarta’s Real Estate Market
However, the short-term housing outlook, does have some headwinds to buck. During 2017, Mexico’s recent economic performance slowed down incrementally. Such of course, poses an increasing risk to employment and short-term consumer confidence. It is believed, this was caused largely due to the upcoming election uncertainty of 2018.
But, overall, the economy grew by a moderate 2.5% year to date, in the first quarter. Spurred by the healthy consumption growth. Softened however, by tempered oil production cuts. In addition, more public sector restraint, as well as the lessened USA industrial activity, has also been labelled a partial factor overall. President Trump has still not gained much popularity in Mexico. Nor, with its people.
Home prices have not yet shown a reliable and sustainable upturn at the time of this writing. However, that is expected to change for the better, very soon. At this moment, housing prices remain a bit of a roller-coaster. Design-Build of new custom homes is the same way. Thus, dips and peaks, are still a by-product, following the dramatic downturn of the United States and global economies in 2008.
Overall Outlook for Real Estate Trends in Puerto Vallarta Remains Very Promising
In addition, even with recovery being slow in the United States, the Puerto Vallarta real estate market trends are most favorable. Out of the 3 countries, Puerto Vallarta real estate trends offer the most promise, to Canadians and Mexicans. It’s expected, the USA will continue to suffer considerable hardship. Until at least, some predictability for the next US election. If President Trump is re-elected, there could be a bit more stability forthcoming. However, if Americans again decide it’s time for change, who knows! What’s best? Opinions vary far and wide.
However, as it stands, the Puerto Vallarta real estate market trends are the most favorable overall. They’re poised for a dramatic surge. A surge, that will make a lot of investors and incomers, very happy. Hence, the National House Price Index average rose by only 1%. By contrast, year to year in the first quarter, it was down by 2% overall from a year earlier. This, after inflation adjustments were factored in.
However, price gains for existing homes out-strides the prices of new homes, ever since 2013. Hence, this short-term trend is reflected by proximity to urban centers. Improved quality in transportation infrastructure are influential also. Moreover, a shift in federal housing policy. Its new preference, in favor of urban high-density housing, over new suburban development, also weigh in on the short-term Puerto Vallarta real estate market, as well.
Reduced Borrowing Costs – A Key Factor In The Real Estate Market Trends
Notwithstanding any of the foregoing, borrowing costs are expected to drift incrementally over the coming year. Likely, a few small dips and peaks. The Bank of Mexico is likely to follow the gradual normalization of USA monetary policy. Nevertheless, the lending rates are expected to remain staunchly at pro-growth levels. Borrowers do have several options. However, prudent choices need to be made, to sustain low carrying costs in the short-term rising interest rate environment. These include, the lengthening of loan maturity, thus giving more immediate relief.
Many higher-income earning borrowers, will undoubtedly benefit. By switching government agency debts over to more competitive commercial bank loans who may offer lower interest rates, the end-user wins. Hence, we expect the Mexican economy to gain more traction. Throughout the last half of 2017, continuing momentum entering 2018 and beyond, will happen. Such a movement will aid in supporting job creation, as well. Household spending, and credit demand will increase, proportionately.
USA Economic Recovery Hasn’t Helped
In addition, while the USA rebound has been slow to materialize, more recent data, is pointing to strengthened consumer demand from there too. Primarily, evidenced by an upturn in automobile and home sales. As the United States outlook continues to show promise of recovery, it will bolster Mexican exports. Reinforcement, by a more competitive currency, underpins that happening.
In addition, enhanced trade treaties with Canada, help Mexico immensely. Substantially lower labor costs within Mexico, should add to this upward trend overall. Combined, these are all additional key factors, very promising for the Puerto Vallarta real estate market, and for Mexico property. Especially so, the stronger relationship ties with Canada, fueled by President Trumps unpopularity with Mexicans.
Key Industry Sectors Spike Real Estate
Significantly, the medium-term growth prospects for Mexico are being hedged. Structural adjustments underway in key sectors, are the root-cause. A very strong United States and Canadian dollar against the Mexican Peso, gives Puerto Vallarta real estate buyers a significant edge. When converting currency and buying in Puerto Vallarta, there’s a much bigger ‘bang for their buck’.
Likewise, energy, education, labor, telecommunications and finance, are additional important factors. Also, these are a having a very positive effect on Puerto Vallarta real estate trends. Increased public infrastructure spending, will contribute toward improving productivity and investment. Likewise, reinforcement and ongoing strength, in additional key industries, such as motor vehicles and aerospace yield a positive influence too. Demographic trends, particularly ones proving a growing, youthful workforce, also are very favorable, for housing demand. But, over the medium term, the Puerto Vallarta real estate market trends are very encouraging.
Young Population Play a Key Role in Market Trends
Furthermore, according to the United Nations most recent population estimates, the median age in Mexico is around 28. This compares to 38 in the United States, and 41 in Canada.
Rapid urbanization in the last 10+ years, has elevated the urban share of Mexico’s population overall, to nearly 80%. That closely approaches Canada and United States levels.
Therefore, this unto itself, is a primary factor in very promising Puerto Vallarta real estate market trends, as we move beyond the middle of 2018.
Top Assistance | Gold Star Real Estate Services
Additionally, as the surveys conclude, URBREG Vallarta Real Estate Group, is a top source and preferred choice, if you need help. These surveys, also underscored that Universal Residential Builders & Real Estate Group, is one of the top customer service firms in the area, to work with.
International Living says, it’s largely due to URBREG’s extensive international experience. Their knowledgeable agents, customer service, and near-flawless track record, are key components. All this is supported by their far-reaching and stretching global marketing capabilities. Thus, for Bahia de Banderas, Puerto Vallarta, Nuevo Vallarta, Bucerias, Sayulita, Punta Mita and Riviera Nayarit real estate, URBREG was rated in the top 2. In many parts of the survey, URBREG International Group ranked #1.
We welcome you to find out more about the Puerto Vallarta real estate market and trends, by getting in touch. If you need some help, the URBREG International Vallarta real estate group invites you, to utilize the services of our pros.
URBREG’s Team is Constantly Creating Confidence in Puerto Vallarta’s Real Estate Market
Lastly, from a social perspective, one of the URBREG International Group objectives is to have our clients and visitors, as friends, followers or fans on Social Media. So, we’ve included some of our social media related to the URBREG website Puerto Vallarta real estate market trends section, below. Follow Us! SHARE us and help #SpreadTheWord too, if you’d be so kind.
In addition to that, we’ve included all our phone contact info too. Just in case you need to call with a question or request.
Contact URBREG Puerto Vallarta By Phone
Of particular importance, you can call URBREG International Group 24/7/365. Phone toll-free, from anywhere within North America at: 1 877 9 URBREG (1 877 987 2734). Or, if you’re calling from within Mexico and Latin America, get in touch with us at: +52 1 322 146 8325. Internationally reach us by phone at: 011 52 1 322 146 8325. Para hablar en Español, por favor llame a: +52 1 322 152 6747. Email us at: info . general @ urbreg . com.
Remember, the URBREG Puerto Vallarta real estate market group, and all our associates are the one-stop-shop, for everything residential. Accordingly, you just might want to learn about our products and our Puerto Vallarta real estate services.
Plus, when you’ve got an inquiry about Mexico property you want to list and get sold, or purchased, have a look at this PAGE. There, you’ll get more info about those services. Perhaps, you’ve got an architectural need, or rewarding careers inquiry?
URBREG Puerto Vallarta Helpful Links | Main Social Media
View our Pinterest Boards. Likewise, See photos on Instagram. And, Follow us on Twitter. Of course, Like us and follow on Facebook. Lastly, keep up to date on the latest home design trends, and Puerto Vallarta real estate market trends with us!
Additional Puerto Vallarta Resources
Also, have a peek at our ‘Additional Stuff’ section. That way, you can check out our customer rewards, as well. Likewise, visit our website Terms of Usage or Puerto Vallarta real estate pages. Similarly, writing for us, Payment Options, and Rewarding Careers are important. Furthermore, you’ll likely want to see our Photo Gallery, Mission Statement, Testimonials & Reviews too.
Get Into Business | Share Successes | URBREG Puerto Vallarta
Maybe you’ve got an interest in getting into business for yourself. If so, you’re also at the right place! Visit the Franchise Opportunities page, for all the info related. Thus, you can check sharing in our success. It’s easy to become part of the long success story, at URBREG International Group of Associates.
We’d look forward to adding you to the Universal Residential Builders & Real Estate Group Inc. And, the URBREG International Group family.
Other URBREG Puerto Vallarta Real Estate Things To Check Out
Equally exciting, come as our guests and stay in one of our vacation rental Puerto Vallarta homes. Soak up some rays. Relax on the beach. Write your memoirs. Meditate. Recharge. Do yoga. Have a cold, refreshing drink in the sunshine. Whatever it is you like to do on vacation, the URBREG International Group likely has the perfect Puerto Vallarta vacation home or condo, just for you.
Otherwise, have a look at sustainable gardening idea how to’s. As well as, tips on such things as repairing a mold problem in your home, or dealing with landscaping at an existing or brand new one. On our auxiliary website pages, you’ll also find architectural designing, Mexico/Latino or Canada/USA custom home building, and landscape/outdoor living. Others include, more info related to the Puerto Vallarta area real estate market, or general construction and contracting.
More URBREG Puerto Vallarta Page Links
Maybe, you need to go to our About Us page. You can do so, by clicking HERE. Furthermore, to find other locations on our websites quickly, our Sitemap will help you a lot. Whatever Nuevo Vallarta, Puerto Vallarta, Bucerias, Punta de Mita or other assistance you need, URBREG is here to help.
Including, getting you tickets to the Victoria Secret Fashion Show!
Also, be sure to have a look at the home improvement section, or the landscape master plan article. There, you will learn the benefits and why you need a landscape design plan for your outdoor living spaces.
URBREG Puerto Vallarta Real Estate Market Trends Conclusion
When you make an inquiry, URBREG’s Puerto Vallarta real estate market personnel will get back to you. That’s, for sure! But, if you’re sending us spam or unsolicited ‘junk‘ materials, then you probably shouldn’t count on hearing from us any time soon. Of course, most of you legit inquirers, so we aren’t too worried about the ‘SPAM thing’. As such, we thank you in advance for your contact to our Client Care & Customer Support Team. Your patience is sincerely appreciated, while we process your online inquiry.
Thanks From Our Puerto Vallarta Team & ALL the URBREG Associates
It’s important to note, that we’re mighty obliged you dropped by our URBREG Puerto Vallarta real estate market trends page. Our Team appreciates your QUESTIONS, LIKE’s, COMMENT’s, and SHARE’s too! Likewise, we’d love you forever, if you’d be so kind to #HelpUsOut and #SpreadTheWord about all the positives of our firm. To family, friends, colleagues, and neighbors. Just use the social media buttons provided. Enroll for our Newsletter too, if you prefer. #ThanksAMillion from #TheURBREGTeamOfExperts.
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Finally, whether you’re in Canada, USA or Mexico, get in touch with any needs! Experience URBREG’s top-of-the-line Puerto Vallarta Real Estate services today!
Of particular importance, Follow Us on Twitter and Instagram, as well. Also, while we’re on the topic of social media, check out all the URBREG Puerto Vallarta real estate market trends and other stuff on our Pinterest Boards too. Likewise, get to know our firm and staff on LinkedIn, on YouTube and Google+ too, if you wish. Lastly, our Puerto Vallarta Real Estate Market article was LAST worked on and UPDATED: 21 JULY 2018.