subject: Appreciation in Real Estate in Puerto Vallarta [print this page] Appreciation In Puerto Vallarta Appreciation In Puerto Vallarta
Ap pre ci a tion (noun)
Definition: Growth in value - an increase in value, especially over time;
Appreciation is a very subjective word. It is thought that what goes up, must come down; but what does that signify in real estate? Since the beginning of time we have seen the cyclical movement in real estate prices. Many times it is just a natural self-adjustment of the market and at other times, such as now, there are other factors influencing pricing such as economic variables in our central target-market and of course our own domestic changes.
It has been cited that the real estate market for villages in beachfront locations in Mexico was the one that most felt the effects of the recession in 2008. The real estate crisis in the U.S. put a brake on selling in the second home market, while the decline in tourism activity limited the opportunity for Mexico's nationals to arrive at their dream of purchasing a vacation condo as well.
Does that mean the marketplace is dead and will not recover to the point where one can "own a piece of the rock", as Prudential likes to proclaim, and see their investment not only appreciate, but become one of the best investment gains of a life time?
Supply and demand have always been two of the most dynamic forces in the appreciation of any tangible real estate investment. Fortunately, Puerto Vallarta Real Estate is always in demand for its tropical weather, beautiful landscape and friendly people; and there is only so much coast line to develop, which creates a finite investment opportunity.
The hurdle for this year for realtors will be to adapt to an environment of diminished growth, taking into account at all moments real demand and attending more precisely to customer's preferences and desires, and remembering the rule of thumb has always been and still is, buy low, sell high, and there is no better time to invest low than right now to ensure that you will be able to sell high in the future.
Marilyn Newman is a sales associate with Prudential California Realty-Vallarta Division. She can be reached at marilyn.newman@prurealtypv.com .
