What indicators do you use to decide when the right time is to make an investment? Most real estate purchases in the US or Canada are timed around people moving from one house to another house for various reasons such as moving for a new job or moving up to a bigger house when the family requires extra room. Our real estate market is primarily a second home / vacation property which has a completely different trigger as to when people make decisions. Because we are a second home market, the drivers are more similar to those that investors use in their decisions. Why should I buy now? Is the market getting better or will I do better if I wait longer?
I will highlight some of the market triggers that indicate the status of the Puerto Peñasco market, demonstrating we are a year into a slow steady market recovery.
Growth in Services:
- Property additions to Puerto Peñasco within the past year include a Sams Club, AutoZone, Citicinemas, a 6-plex movie theater and Bodega Aurrera (Wal-Mart subsidiary). These types of investments do not happen without a good deal of research and a strong belief in the upcoming market conditions in Puerto Peñasco. If you think these investments are big indicators, wait until to you hear what is being planned and what is rumored for Puerto Peñasco?
Services under construction or being planned:
- A Convention Center is under construction and is expected to be equipped and open by the middle of 2013. Becoming a convention city may take some time but when we arrive it will bring a steady flow of new visitors.
- Commercial Airline Flights are under negotiation with Aero Mexico to fly from Hermosillo to Puerto Peñasco to Las Vegas. A contract to start the flights in February is expected to be signed in early October. If you are wondering why Las Vegas and not Phoenix? The main reason is that flying to Las Vegas from the rest of the world is much cheaper than flying to Phoenix, so it will be cheaper to get visitors here. We all know people who would come or come more often if they could fly avoiding traffic and border patrol check stops. Think of the expanded geography a commercial flight could attract visitors from. When the commercial flight is announce, please be part of our social network getting the word out so maintain enough usage to keep the flight. Maybe Phoenix can be added later?
- The Cruise Ship Home Port is in the final leg of planning with a decision for initial construction to be announced by May of 2013 with a two year construction window to follow. This is the biggest game changer for the local economy. If one cruise ship holds up to 2,000 to 3,000 people what would you speculate Puerto Peñasco would need to service the multiple cruise ships weekly being supplied in a home port? We would not only need more hotel rooms, parking and shuttle, restaurants, shops and the normal tourist services but would need to supply the ships with fuel, repairs, food, etc. Our infrastructure would have be able to support the traffic.
A Home Depot and a Walmart store coming soon. The Home Depot is understandable but having a Walmart and Bodega Aurrera in Puerto Peñasco does not make sense for me, but then again it is just a rumor.
AMPI’s Real Estate data:
Here are a few key indicators from our AMPI MLS database comparing January 1stthis year to now (nine months) to the same period from last year:
- Total active listings dropped 11%; meaning a shrinking inventory of properties available for sale
- New listing dropped from 400 to 339; less owners wanting to sell
- The number sold increased from 110 to 132; showing a 20% increase in sales
- The average sale price increased from $162,034 to $172,357; 6% increase in sales price. Prices are starting to increase. We even had a few properties sell higher than list price, even though the average sold price is 87% of list price.
- Total sales volume increased from $17,832 last year to $162,034 this year
Another indicator is the increase of visitors to Puerto Peñasco. We are nearing the visitor numbers we experienced before the recession of the past three years.
If you are considering buying real estate in Puerto Peñasco, the right time is now.
Sonora State law requires Real Estate Agents to be licensed. AMPI (Association of Mexican Real Estate Professionals) is the sister organization to NAR (National Association of Realtors) in the USA. Actually AMPI Associates are also able to become NAR Members. Our members are committed to excellence. We encourage you to visit our association’s website at www.RockyPointAMPI.com and learn more about whom we are and what we have to offer you and call one of us TODAY!