Puerto Peñasco relies heavily on American tourism and investment, making its economy sensitive to U.S. economic trends, policies, and consumer sentiment. With the recent conclusion of the U.S. Election and a new administration set to assume office in January 2025, what effects will this have on the tourism and real estate sectors within Puerto Peñasco?
From 2020 to 2022, Puerto Penasco experienced record-breaking growth and performance. However, the economic conditions in the U.S. over the past couple years have created challenges that hindered the growth of real estate in our area while reducing short term rental incomes and overall tourist ancillary spending.
Currently in 2024, inventories have surged by 42% over the last year, which means if this negative trend of rising inventory continues beyond demand, it could result in either price stabilization or worse prices may begin to fall.
Changes in U.S. fiscal policy under a Trump administration could impact U.S. stock markets, inflation, and interest rates. Strong U.S. economic growth often results in increased disposable income for Americans, potentially boosting tourism and second-home purchases in Puerto Peñasco.
If the new administration’s policies bring about strong U.S. economic growth and keep interest rates relatively low, American investors might look to Puerto Peñasco once again as a profitable destination. Given its appealing real estate prices in comparison to other resort towns across the United States, Puerto Peñasco could quickly grow in attractiveness, suggesting that now is an opportune moment to reassess any previous investment decisions you may have put on hold due to the election.
Should investor interest rise, heightened demand might result in an increase in property values, leading to higher investment costs. While real estate in Puerto Peñasco is still quite affordable, a surge in American buyer interest could drive prices higher, especially in desirable beachfront communities. In the short term, this could provide substantial returns for those who invest early but over the long haul, ongoing development in the area could cause property values to increase even further.
Given Puerto Peñasco’s proximity to the U.S. and its appeal to American buyers, the area offers strong growth potential as a secondary or vacation investment market. Right now, might be an opportune moment to make investments, particularly if future U.S. economic strategies favor low taxation and increased disposable income. If you’ve been hesitant and waiting for the election results, I recommend acting now. Consult with your AMPI-certified real estate professional and make your move before prices begin to rise, making it less affordable for you.
About the author: Joseph Sanchez is a AMPI-certified real estate agent with RE/MAX Legacy, developer of Viviente at Sandy Beach , president of Rocky Point Home Builders and a U.S. Veteran. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information visit www.rockypointrealestate911.com on the internet.
