Often falsely credited for the colonization of Puerto Vallarta, Mismaloya is a lovely settlement about twelve kilometers from the city. In 1963 the Hollywood director, John Huston, chose it for the location of his movie
¨Jardín Botánico Vallarta¨ Un beneficiario del próximo “House Hunters International” Evento de caridad en Puerto Vallarta. Timothy Real Estate Group será anfitrión del segundo evento de caridad House HuntersInternational el 24 de Noviembre del 2014
This time of year, there is an abundance of conservation regarding mosquitoes in and around Puerto Vallarta. Some of us are just too delicious for our own good. We have a friend who’s tried everything
The Gift of Life Blood is always needed, since surgeries and accidents are daily life occurrences. In Puerto Vallarta you won’t likely be paid monetarily for giving blood but you will benefit in the case
The local zocalo, (from Spanish zócalo socle and from Italian zoccolo) is the main square in any Mexican town, Puerto Vallarta being no exception, and is often the center of much local activity. At “El
We received a frantic call from a friend here in Puerto Vallarta at dusk the other evening. A bat had flown in the bedroom window of our single female friend and she was terrified. This
By Stephanie Madan I apologize for that recent excitement at Puerto Vallarta International Airport. Although it had never been my ambition to create an international incident, there are some things you just have to do.
We normally take the pup for long walks to get our exercise but when we want to shed a few post-holiday pounds or strengthen muscles, we head to the stadium. Puerto Vallarta has long been
Health Tips When Traveling We love to eat, whether we’re in Puerto Vallarta or anywhere else in the world. So far we’ve been very lucky to not experience Montezuma’s Revenge or Delhi Belly, but it’s
The Mexican Quinceañera Every Mexican girl has a quinceañera. The translation means fifteenth birthday but in Puerto Vallarta it can mean so much more. A young lady often gets a party to outdo all parties;
The bathroom is one of the most crucial areas of the house. It is where you can refresh yourself before or after work. 10 designers made use of their brilliant ideas to come up with
Many years ago, upon one of our first visits to Puerto Vallarta, before we decided to make our residence permanent, we read a sign on our way into the city from a day trip returning
Q: How did you guys wind up on House Hunters International? Our real estate agent Taniel Chemsian from Timothy Real Estate approached us initially about
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
Once again the third annual Vallarta Real Estate Fair held Saturday March 28th offered many local residents, tourists, buyers and sellers of real estate the
We all see home prices rising in most parts of the country. In fact some parts of the country have seen prices surpass the high points that were seen before the housing crisis. This rise in market prices has caused many people to worry about another housing crisis and rethinking whether they should buy any real estate right now. I personally am still buying houses and I will continue to buy houses going forward. This article is an explanation of my limited view of our national economy based on my local economy. I am by no means an expert and please feel free to chime in if I am missing something or got something drastically wrong!
I am in located in Northern Colorado and our market appears to be very similar to the national market. The median price in Greeley Colorado is about $180,000 and our prices have increased about 20% over the last two or three years. The price increases have made it harder to buy houses as cheap as I would like too, but even though I have to buy houses for more money now, I can also sell and rent them for more money as well. In fact our rental market is going crazy with rents increasing 20% as well and vacancies extremely low. I am still making just as much money on my fix and flips as I was two years ago and I am making just as much on my new rental property purchases as well.
In my market we have almost no inventory; last year we had 1,500 homes for sale and now we have 300. The law of supply and demand has pushed prices up, especially in the lower end of our market. In the past it was not uncommon to see homes for sale for under $50,000 in the low end and now it is hard to find anything below $100,000. There simply are not enough lower priced homes for the current buyer demand. That demand is continuing to push prices higher.
Related: What Needs To Be Said About Appreciation
For seven years there was no new construction in our area. Our market was fueled with REO and short sale inventory and that inventory was priced much lower than any new homes that could be built. The inventory kept coming and our prices slowly decreased as well. Then someone turned off the faucet and the REO and short sale inventory dried up. All the sudden there is very little REO inventory and people have to resort to buying fair market sales, but there has been no new building while the population has been increasing every year. People still want houses, but there are not enough houses in our area to meet demand.
Building in our area has taken off lately. Builders are filling up the vacant lots that were left in subdivisions when the housing crisis started. There is a lot of new construction in our area, but prices start at about $200,000 for a new house. The construction can’t come close to the median price or the lower end demand. I think the new homes can ease the housing shortage in some segments of the market, but we still have huge demand in the lower end and with little inventory.
I only know my market, I don’t have the time to study every state in the US and learn their market statistics. I am guessing many markets are similar to my market from what I hear from other investors and agents across the country. I can’t possibly see how our market will see another huge decrease in prices unless a huge wave of REOs hit or the national economy tanks. Unfortunately I can’t predict those scenarios, but I have high doubts that we will ever see prices drop down to 2008 levels again. As for other markets in the US I think it could go either way. I see crazy prices in areas like California again and California always seems to have extreme ups and downs ever since I was a child. Could some markets see a huge decrease again? Probably, but I don’t think the entire US will see huge decreases anytime soon.
This is the part that I am struggling with. If the average person cannot afford the average house and rental rates are skyrocketing; how can prices keep going up? To me it seems inflation may be the answer to allow people to afford higher priced homes. We have had very low inflation rates recently due to the poor economy and maybe inflation will help balance the housing market with the economy. That is unless the cost of houses rise right along with inflation. I am in no way an economic expert and this is a very simply observation on my part.
The great thing about real estate is if you already own property; inflation is not a bad thing. Your rents and values will most likely increase and your payments stay the same. The downside is it is more expensive to buy property, but if the rents are rising as well; you should still be able to make the same amount of money as you did with a lower priced property. That is why I continue to buy properties and I am not worried about rising prices. I also can’t predict the future, I can only do the best I can right now with things I …read more
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