March 2013 ● Mexico’s economy in 2012 – Real Estate activity for the beginning of 2013

By Harriet Murray ● Cochran Real Estate ● March 2013

According to the Associated Press, The Mexican economy grew 3.9 percent last year, exceeding government forecasts for Latin America’s second biggest economy.

The country had posted similar growth in 2011, and the government had forecast a rise of 3.5 percent for 2012.

Puerto Vallarta Real Estate

Puerto Vallarta Real Estate

The National Institute of Statics’ and Geography reported that agricultural activity grew to 6.7 in 2012 because of higher production and demand in commodities of beans, corn and wheat.

A similar growth pattern developed in 2012 when the economy grew by 3.2 percent in the last quarter as in the prior year. (2011).

Mexico‘s recession in 2009 saw the economy contract by six percent, as the world financial crisis spread to North America.  Mexico, second to Brazil economically in the region, bounced back in 2010 with 5.3 percent growth.

In the Bay of Banderas, which includes not only Puerto Vallarta, Bucerias, Punta de Mita, but other resort towns with bays ideal for swimming, boating and fishing; optimism in real estate is guarded, but evident.

In 2012, buyers were not looking for homes 1 million us dollars and higher. The first two months of 2013, buyers in this price category have been here, and they have been looking very seriously.

We continue to have strong buying activity in pre-construction condominium projects in town (Puerto Vallarta) and Conchas Chinas on the south.

Sellers are more accepting of the high inventory and beginning to slash their asking prices in order to make a deal. Those sellers who don’t have very attractive prices may not receive any interest from buyers by even looking.

Harriet Murray

This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review.

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