Our real estate market here in Puerto Peñasco achieved another milestone surpassing $100 million in total “Dollar Volume of Sold Listing,” for the second year in a row making that the first time in history that Rocky Point Real Estate has had back-to-back years of over $100 million or more in sales production.
This year’s “Dollar Volume of Sold Listing” topped over $126 million ranking this year as the second-best year ever in the history of Rocky Point real estate sales. Last year’s 2021 production set the record at over $170 million and remains the number to beat. 2022 and 2021 rank as the two best years ever pushing prices to all time highs for sellers while reducing inventories for buyers.
To put 2022 and 2021 in perspective, in 2019, the last time a record was set sales were at $61 million. Then 2021 arrived in at over $171,000,000 meaning revenues more than tripled the record-setting performance in 2019. 2022 is another stellar year outpacing that record setting performance of 2019 by more than double.
Another example is the year 2005 which was considered the last real estate boom year before the market crash of 2008, the total dollar volume of listings sold was only a little over $28 million and that was considered a record at that time.
Also, another noteworthy record to mention is for the first time since the early 2000s, we have had three record setting years in the last four making this period the best years on record for real estate transactions!
What does this mean for Sellers?
Given the state of the current market, if you are a property owner and have ever thought about selling in the future then I would put your home on the market this year and sell. We are currently at the top of the price surge, and I expect prices to plateau in 2023 due to the high interest rates in the U.S. and negative economic indicators that will deter buyers from purchasing a vacation home. Even if prices plateau it still means you still have an opportunity to get the most money possible for the sale of your property. By delaying the sale of your property this year, you risk getting less money if the economy takes a nosedive in 2023 and you finally decide to sell in 2024. My advice is cash in your chips and do it this year/now. Consult your local real estate advisor who would be happy to perform a market analysis and tell you how much your property is worth.
What does this mean for Buyers?
It is still a seller’s market but is slowly transitioning to a buyer’s market because demand has fallen a bit due to the instability in the economy and high interest rates. In 2023 you can expect to pay the same prices you are currently witnessing with some prices starting to fall depending on a seller’s situation. However, what you won’t see is a major drop in pricing during 2023 as we had seen in 2008. Prices have plateaued and will not rise like they were in 2022 but the good news for buyers is they may start to fall just a bit. If you are in the market for a lot, home or condo expect to pay close to asking price because there is still competition for desirable properties that are priced well.
About the author: Joseph Sanchez is a real estate agent with RE/MAX Legacy and president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and engineered renovations He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information email him at firstname.lastname@example.org