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Puerto Vallarta Real Estate Market Trends

Puerto Vallarta Real Estate Market Trends Luxury Pool Image

The housing sector in Mexico overall is showing signs of greater sustainable momentum in 2016. 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 Conclusions

Luxury Vacation Rental Villa Photo Related to Puerto Vallarta Real Estate Market Trends

In addition, improved labor market conditions for the Mexican people, together with record low borrowing costs, help greatly. Hundreds of retiring ‘baby-boomers’ are seeking a warmer climate and safe refuge in their older age. All these factors combined create and instill greater confidence. Puerto Vallarta real estate market trends are strengthened and bolstered.

So Says Puerto Vallarta Real Estate Market Trends Survey

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, dramatically outperforming overall GDP growth.

Puerto Vallarta Real Estate Trends Image of Taheima CondominiosThis new pickup in the Puerto Vallarta real estate market trends, follows roughly four years (2012, 2013, 2014, 2015) of declining investment. 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. Resulting negative impact like this takes time to heal.

Puerto Vallarta Mexico’s mortgage credit growth is also accelerating at a very healthy rate. Very attractive residential and commercial bank loan mortgages are now available. Primarily, these are for households and investors with established credit history and higher incomes. They’ve increased by a whopping 10%, year to date. This is an amazing gain for the previously embattled Puerto Vallarta real estate market trends in Mexico.

Surveys Indicate Plenty Of Promise In Puerto Vallarta Real Estate Market Trends

Vacation Rental Condo Photo with Pool and Spa Related to Puerto Vallarta Real Estate Market TrendsIn support, a very recent wide-reaching and comprehensive Puerto Vallarta real estate market trends survey was done by Coastal Living Magazine. Among the conclusions, metro Puerto Vallarta real estate is among the 3 top places 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. Like that is not enough, to retire also! Expected forecasts based upon reliable and predictable factors are that, for the next 15 to 20 years, Puerto Vallarta real estate market trends remain very promising.

Largely, a retiring baby-boomer crowd will cause continued growth at an exponential rate. Already, 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 For Puerto Vallarta Real Estate Market Trends

According to the National Housing Commission (Conavi), new lending by the Institute of the National Housing Fund for Workers, surged. It’s up by over 30% for the same previously measured period of time.

Infonavit, which is publicly-owned and geared toward the lower-income households, account for the largest portion of the mortgage market in Mexico. This solidification, in not only Puerto Vallarta real estate activity, but throughout Mexico, has been supported by considerable initiatives. Such initiatives come from the public-sector and 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.

Beautiful Golf Course Image Related to Puerto Vallarta Real Estate Market TrendsThus, the Puerto Vallarta real estate market trends for the area, and likely the large majority of Mexico overall, are very encouraging.

The Mexican Government Contributes To Puerto Vallarta Real Estate Market Trends

The Mexican Government’s National Housing Policy announced investment targets of 370 billion pesos. In January 2015, 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.

In addition, the Pena Government announced an increase in the housing subsidy program. This of course also brightens the Puerto Vallarta real estate market trends, on both the domestic and the global stage.

It is 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 because of all the favorable factors there.

Mortgage Reforms Play A Role In Puerto Vallarta Real Estate Market Trends In Mexico

3D Concept Design Rendering Related to Puerto Vallarta Real Estate Market TrendsRecent mortgage reforms made to the market from both Government and private sector, highlight extended loan terms. Increased borrowing limits and government guarantees on construction loans procured by consumers, bolster the efforts.

Infonavit currently pilots a program to convert a wide variety of inflation-linked mortgages to fixed-principal loans. The residential sector, particularly the demand for new homes, is also benefiting.

Dramatic improvement is evident in the labor market, perks, conditions, benefits and the like. Formal sector employment, a key driver for the household credit requirement, has increased by well over 4% in 2015, through the end of June.

An Urbane Snapshot Of The Puerto Vallarta Real Estate Market Trends In Mexico

Very encouraging news indeed. Overall Puerto Vallarta real estate market trends appear very favorable in Mexico. The dramatic improvement trend echoes from a combination of 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 borrowers domestically. Also very attractive for Puerto Vallarta real estate trends. Greater stimulation of greater foreign investment is bound to prevail as well.

Low Unemployment Contributes In A Significant Way To Puerto Vallarta Real Estate Market Trends In Mexico

As at the end of June 2015, jobless rate in Mexico hovers around 4.5%. This is its lowest level in nearly seven years! Another contributing factor to very encouraging Puerto Vallarta real estate market trends for Mexico.

Puerto Vallarta Real Estate Market Trends Image Instill Confidence in Developers and BuildersIn particular, safe and secure tourist destinations such as Puerto Vallarta are benefactors. Its’ surrounding suburb communities like Nuevo Vallarta, Bucerias, Sayulita, La Cruz, Punta de Mita, most other areas of the Riviera Nayarit and Bahia de Banderas, benefit greatly too.

With particular focus on the major purchasing intentions segment, consumer confidence has surged. It’s considerably higher that it has in almost a decade. Very accommodating monetary policy settings have bolstered the affordability of that. The Mexican residents and foreign investment sector alike, seek and need this most.

The Bank of Mexico has maintained its benchmark interest rate at the historic low of just 3.0%. From earlier in 2014 to present, this also stimulates the Puerto Vallarta real estate trends for Mexico. Mortgage rates have continually moved lower for the past year now. Alongside, reduced risk premia, as well.

A stern increase in competition among private sector lenders, puts downward pressure on rates for loaned money. Both from banks and private lenders.

The Short-term Humps And Bumps In The Puerto Vallarta Real Estate Market Trends For Mexico

Photo of an Elegant Home Built in Confidence with Puerto Vallarta Real Estate Market TrendsThe short-term housing outlook does have some headwinds to buck however. Mexico’s recent economic performance has slowed down incrementally. Such of course, poses an increasing risk to employment and short-term consumer confidence.

The economy grew by a moderate 2.5% year to year, in the first quarter. Spurred by the healthy consumption growth, but softened by tempered by oil production cuts. In addition, more public sector restraint, as well as the lessened USA industrial activity, has been labelled the cause overall.

Home prices have not yet shown a reliable and sustainable upturn at the time of this writing in mid-2016. That is expected to change for the better very soon. At the moment, housing prices remain a bit of a roller-coaster. Design-Build of new custom homes is the same way. Dips and peaks are following the dramatic downturn of the United States and global economies in 2008.

Overall Outlook For Puerto Vallarta Real Estate Market Trends In Mexico Remain Very Promising

Even with recovery being slow in the United States, the Puerto Vallarta real estate market trends are most favorable. In both Canada and Mexico, out of the 3 countries; Puerto Vallarta real estate trends offer the most promise.

Photo of a Large Luxury Home Related to Puerto Vallarta Real Estate Market TrendsThe USA will continue to suffer considerable hardship. Until at least after the outcome of the 2016 election. If Hillary Clinton is elected, the impact on Mexico will be much different than if Donald Trump wins.

Which one is best? Opinions vary far and wide.

As it stands however, the Puerto Vallarta real estate market trends are the most favorable overall. They’re poised for a dramatic surge. A surge that ill make a lot of investors and incomers, very happy.

The National House Price Index average, rose by only 1%. Year to year in the first quarter, it was down by 2% overall from a year earlier after inflation adjustments were factored in. However, price gains for existing homes out-strides the prices of new homes ever since 2013. This short-term trend is reflected by proximity to urban centers.

Improved quality in the transportation infrastructure are influential. A shift in federal housing policy to favor urban high-density housing over new suburban development, also weigh in on the short term Puerto Vallarta real estate market trends, as well.

Reduced Borrowing Costs – A Key Factor In The Puerto Vallarta Real Estate Market Trends For Mexico

Notwithstanding all of the foregoing, borrowing costs are expected to drift incrementally higher over the coming year. 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.

Photo of a Large Family Home Related to Puerto Vallarta Real Estate Market TrendsBorrowers do have several options. 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.

We expect the Mexican economy to gain more traction. Throughout the last half of 2016, continuing momentum entering 2017 and beyond, will happen. Such a movement will aid in supporting job creation. Household spending and credit demand will increase proportionately.

In addition to that, while the USA rebound has been slow to materialize, more recent data is pointing to strengthened consumer demand from there too. This is evidenced by an upturn in automobile and home sales. As the United States outlook continues to show signs of recovery promise, it will bolster Mexican exports. Reinforcement by a more competitive currency underscores that happening.

Substantially lower labor costs within Mexico, should add to this upward trend overall. Additional key factors, very promising for the Puerto Vallarta real estate market trends exist for Mexico property. Included, is the stronger relationship ties with Canada.

Key Industry Sectors Spike Puerto Vallarta Real Estate Market Trends In Mexico

Puerto Vallarta Real Estate Trends Image of the Marina AreaSignificantly, 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’.

Energy, education, labor, telecommunications and finance are additional important factors. These are also having a very positive effect on Puerto Vallarta real estate trends. Increased public infrastructure spending will contribute to improving productivity and investment. Reinforcement and ongoing strength in additional key industries, such as motor vehicles and aerospace yield a positive influence.

Demographic trends, particularly ones proving a growing, youthful workforce; also are very favorable for housing demand. Over the medium term, the Puerto Vallarta real estate market trends are very encouraging.

Young Population Plays A Key Role In Puerto Vallarta Real Estate Market Trends For Mexico

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.

This unto itself is a primary factor in very promising Puerto Vallarta real estate market trends, as we move beyond the middle of 2016.

Puerto Vallarta Real Estate Market Trends Assistance | Gold Star Real Estate Services In Puerto Vallarta

As the surveys conclude, Urbane Vallarta Real Estate Group is a top source and preferred choice, if you need help. These surveys also underscored that Urbane International Real Estate Group, is one of the top customer service Firms in the area, to work with.

Urbane Official Brand Logo for Puerto Vallarta Real Estate Market TrendsAccording to International Living, it’s largely due to Urbane’s extensive international experience. Knowledgeable agents, customer service and near-flawless track record are key components. All this is supported by the stretching global marketing reach. For Bahia de Banderas, Puerto Vallarta, Nuevo Vallarta, Bucerias, Sayulita, Punta Mita and Riviera Nayarit real estate, Urbane was rated in the top 2. In many parts of the survey, Urbane Group ranked #1.

Learn more about Puerto Vallarta real estate market trends by getting in touch. The Urbane International Vallarta Real Estate Group invites you to utilize the services of our pros.

Urbane’s Team is here to Strengthen, Fortify and Constantly Create Confidence in Puerto Vallarta Real Estate Market Trends

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