Flyboard in Puerto Vallarta: If you see someone attached to a hose flying around out on the water, you’re not losing your mind. It’s called hydrolifting and it’s done on a flyboard, the apparatus on which the flyer stands. This is a crazy sport that has caught on fast in Puerto Vallarta. The approximate cost …
The Migrant Issue While the current administration in the White House tries to stop the flow across the southern border moving northward, there are estimates of US citizens living in Mexico that far outreach the numbers flowing to the north. It’s not only people retiring and moving to where the palm trees sway. Tech workers …
PVAngels is about introducing the world to a safe, thriving and community-driven Puerto Vallarta, raising tons of support for its local charities and having a boatload of fun doing it. The PVAngels site is a unique blend of community awareness through the daily posting of local news and events, formal introductions to the charities and …
If you are thinking of hiding in Puerto Vallarta, you might want to reconsider. That old adage :you can run but you can’t hide” applies here in paradise. Time and again, losers from north of the border have sought a refuge in this resort town. Perhaps having watched The Shawshank Redemption a few too many …
Getting Around Do you need a car in Puerto Vallarta? That’s very debatable, and the opinions on this issue are as varied as the assorted experiences. We’ve known many expats who’ve driven their US and Canadian cars to Puerto Vallarta and gone through the arduous process of getting them “Mexicanized.” We’ve done this ourselves with …
Next time you’re on the Malecón in Puerto Vallarta, buying corn on the cob and smothering it in cheese and Salsa Huichol, remember corn, a highly diversified and reliable food source, is a vegetable with a traceable history. You would not be having this tasty, flavorsome treat if it wasn’t for a complicated invention that …
Timothy Real Estate Group filmó el primer episodio de House Hunters International, el increíblemente popular y altamente te adictivo programa de televisión sobre bienes raíces para el canal de televisión HGTV en el 2012. Avanzando rápidamente hasta el año 2014, esta fuerza motriz de los Bienes Raíces filmó tres episodios más, y fueron los anfitriones …
What Happens In Puerto Vallarta It started in Las Vegas. Someone said “What happens in Vegas, stays in Vegas,” yet anyone with an ounce of brains knows that’s not necessarily true. People can hardly help keeping their mouths shut when something deliciously repeatable happens. In Puerto Vallarta, this goes back a long way. When John …
How do you find out what is happening in Puerto Vallarta? Read More »
OK, we can admit it: We Vallartenses like to complain. The potholes in the roads after the rains! Things don’t work like they do in the US or Canada! Traffic on holidays! And oh did we mention downtown blocked off for a parade! But once a year, its time to drop our critical posture. For …
Things That Make Us Thankful We Live in Puerto Vallarta Read More »
Puerto Vallarta’s Wonderful Markets One of the most important things to good cooking is finding fresh, locally grown ingredients. The experience of wandering through Mexico’s markets can be a beautiful experience not only experiencing the flavors of the culture but the flavors of the food. Two of my favorite mercados in the downtown area …
Is it better to list in the summer? The winter? Will I have more competition if I list in the winter? Am I more likely to sell at a greater discount depending on the time of year?
*This post is being presented from the perspective of a seller but it is easy enough to extend the perspectives to those of a buyer*
As a managing broker I appreciate that even with the help of a real estate broker it is difficult to determine the optimal listing price or optimal time of year to list. Practically speaking if brokers and investors were pricing real estate perfectly price changes would not be as common as they currently are. The pricing market interests me so much that when wearing my “professor hat” I spend a fair amount of time examining the pricing of real estate in Chicago in an attempt to better understand movements.
Related: The Best (And Worst) Real Estate Markets (According to New Data…)
As I work through a much larger study I want to shed some light on a few things that investors may find interesting.
This first post is summarizing the trends that were identified when segmenting properties into quarters. In an attempt to answer the questions above I looked at all residential multi-unit buildings from 2006-2012. This resulted in over 11,000 properties that were listed and sold during this period. In this post I am only discussing those properties that did NOT have to submit a price change in order to lead to a sell which reduced the properties sample to 6,410. The table below looks at this reduced sample and shows that over the 6 year period examined the differences in inventory are seemingly negligible. We can see that the first half of a year, Q1 and Q2, certainly have more listings but also more sales as a result.
If we are chasing the buyers we may want to list in the first half of the year but the fact that both Q3 and Q4 had more sales than listings may mean that sellers hold a stronger bargaining position in the second half of a year. The question is would you rather be operating in a market that is moving more inventory or one that has a tighter inventory?
Related: Why Winter is Great for Real Estate Investing
As a buyer you may reason that the fourth quarter is optimal since the fewest properties are being demanded and that prices will be lower as a result. It is worth noting that the average days it took to sell in this sample was 34.06 days which is relatively quick and speaks to finding the right time to list.
What about discounts?
While it is valuable to have a general sense of you competition what is the discount that these sellers are undertaking in order to sell over an average window of 34.06 days? The table below suggests that regardless of what quarter you list the average discount is approximately 5%. This would tend to imply that regardless of the quarter listed a parcel will sell for a discount of approximately 5%. On a technical note if you are a buyer you do seem to have a marginal benefit if negotiating a purchase in the second quarter of a year and if you are a seller you have a marginal benefit when listing in this same quarter.
What conclusions can be drawn from this summary?
The next step is to examine what happens when we don’t price “right” and have to change the listing price. Next time I will be looking at how price changes are received by the market and how they impact time and discounts.
The post Is There a Best Time of Year to Transact in Real Estate? (This Data Might Surprise You…) is property of The BiggerPockets Blog. and is Copyright
Timothy Real Estate Group Becomes Exclusive Leverage Global Partner for Puerto Vallarta, Mexico. For Immediate Release Beverly Hills, CA. – 3/31/14 – F. Ron Smith, President of Leverage Global Partners, recently welcomed Timothy Real Estate Group as the Network’s exclusive member inPuerto Vallarta, Mexico. A unique alignment of the most prestigious independent real estate brokerage …
TIMOTHY REAL ESTATE JOINS LEVERAGE GLOBAL PARTNERS Read More »
Recently we were asked by newcomers if Mexicans in Puerto Vallarta do anything for their Independence Day. Do they ever! Though the actual date is September 16th, observances take place in Mexico on the eve of a given celebration. Our friends were confused when the 5th of May came and went, and there was nary …
What is DIF? You may have driven by the DIF Community Center on the north end of Puerto Vallarta proper, and seen families and children playing outside or standing in line and wondered what this building holds. DIF stands for Integrated Family Development (Desarrollo Integral Familiar). We’ve heard DIF referred to as the Mexican welfare …
Puerto Vallarta Chili Cook-Off Many years ago, when we first arrived in Puerto Vallarta, an event enlightened us to the camaraderie of the expat group, as no other had. This wasn’t drinks at a beach bar. This was a small sector of the population coming together to make a statement. A delightful chili cook-off with …
More and more Americans and Canadians and other foreigners are spending their winters in Puerto Vallarta Mexico as it is an ideal “snowbird” destination. Puerto Vallarta’s residents are friendly people, Puerto Vallarta has a low cost of living, it is safe, offers many, many lots activities and is located in the heart of Mother Nature’s …
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