By Richard Savino, President
Looking back on the real estate activity for the month of July, it appears that buyers pulled back from our market. The volumes were down as were the median measurements of activity. This pull back could be caused by any number of reasons; the summer heat and humidity, the long standing bad press that has disproportionately affected Puerto Peñasco, the continuing bad economy in AZ and, in general, the USA. Because all closed and sold transactions only numbered 8 for the month and were all priced at less than $160,000, one may speculate that buyers in the $200-400,000 range have become concerned or nervous about purchasing. This timing coincides with the high profile US government debt and deficit negotiations and this may have played a role in July’s low sold volume. While there are anecdotal reports of a consistent level of potential buyers looking at properties, obviously many did not venture above even the $100,000 level as the average sale price for July was only $78,800.00.
While residential listings were slightly fewer for 2011 year to date compared to 2010, the number of solds, pending transactions, average and median sold prices all declined compared to July 30, 2010. Hopefully, Rocky Point real estate experienced only a summer swoon and activity will pick up in the September and October months.
Considering all the dire USA economic news of late, I thought it interesting to note what the economic results of Mexico are in comparison. One of the most widely used measurements of economic activity is the Gross Domestic Product (%). Below is a comparison between the countries for the last 3 quarters (source: TradingEconomics.com):
Country 2nd Qtr 1st Qtr 4th Qtr
United States 1.60% 2.20% 3.10%
Mexico N/A 4.60% 4.40%
While Mexico’s 2nd quarter has not yet been announced, it is strikingly obvious that Mexico’s economy is in far better shape than is the USA’s.
Mexico’s economic strength is evidenced by its increase in manufacturing exports in 2010 by 25%, oil exports increased by 40% and consumer imports increased by 27%, showing increased consumption in the domestic sector. The State of Sonora ranks high in Mexico’s manufacturing for export states. Sonora is ranked number 7 out of 18 states that manufacture goods for export. Sonora has 93,467 employees dedicated to this sector representing 249 companies. The Sonoran cities with the majority of this growth are: Hermosillo, Nogales, San Luis Colorado and Guaymas.
Should you have any questions about this real estate data please consult your AMPI Realtor who can provide you with additional pertinent data customized for your use. I also encourage our readers to visit our AMPI Puerto Peñasco website, www.PuertoPenascoAMPI.com, where there is meaningful information for your review including a list of AMPI members and a section devoted to frequently asked questions.
Be sure to enlist the services of an AMPI professional for all your real estate needs.
President – AMPI Puerto Penasco
Rocky Point Resort Properties