Last summer and fall (of 2015), this office was so busy I had no time to post to the blog. I was in the office 7 days a week, often 12 hours a day, and could barely manage to stay ahead of all the contracts, cap gains calculations, proof reading of new deeds, and showings.
And that was during what is traditionally our quiet low season. This high level of activity was consistent from last May through December. It looked as if this market had finally really turned the corner and was headed back up.
Then, just as we entered into the heart of what is normally our busiest selling season, January, February, and March, things slowed dramatically. How counter-intuitive is that?
Some of the reasons are apparent; the overly strong USD means that the market (priced in USD) is less of a bargain, in their home currencies (CAD and MXN) for Canadians or Mexicans. And in Bucerias, Canadians are normally 75 to 80% of the market. (Not so much in Vallarta.) So the real estate market in Bucerias is especially hard hit this year.
But what has happened to all the American buyers we had last summer and fall? That's a harder question to answer. The fact is no one knows for sure, but there are two possible reasons they haven't shown up this year. First, the global stock market selloff that started in earnest in January, and from which the markets have not fully recovered, spooked a lot f people. And, second, the political situation is so bizarre in the US this year, that many people are stunned by the crassness and unpredictability of it all, and may be postponing big decisions as a consequence.
Regardless, whatever strength the market was showing last low season has certainly dissipated during high season. And I need to take advantage of the time available to get back in the blogging habit.
There will be some sales and listings updates posted in the next day or two.
Robert
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