IL Postcard

Mexico Real Estate Sales Still Strong Despite U.S. Downturn

Date: 08/27/2008

August 28, 2008
Campeche, Mexico

Hola Mexico Insiders,

One question we’re asked a lot these days is whether the U.S. downturn is affecting Mexico real estate markets—and if so, how?

Those asking want to know, of course, about specific areas where they might consider investing or retiring. These are usually the areas where other expats live¾areas where a drop in the number of U.S. buyers might well have an impact.

Fortunately, the news is good. That’s according to our real estate contacts here in Mexico. Yes, there has been some drop in demand. But the effect has been to cool some overheated markets. In Puerto Vallarta, for example, demand is down for lower-end properties—but only compared to last year, which was unusually busy. At the ultra-luxury, top end of the market, business is booming.

In one popular beach destination—we cover it in the September issue of Mexico Insider—contacts tell us that savvy Canadian and U.S. investors, seeing great value for their money, are flocking to buy there.

In another market, we’ve heard that fewer buyers is having a positive effect. Area newspapers and correspondents note that, without easy money, many pie-in-the-sky pre-construction projects have evaporated into what they really were—thin air. Left standing firm is the real market—actual inventory and viable pre-construction projects. And market prices are settling to truer levels. This area is close to the U.S. and was once one of Mexico Insider’s top picks. We plan to visit it soon to see for ourselves—and we’ll publish our findings in an upcoming issue.

So the verdict so far: If you have funds to invest now in a Mexico property, this can be a good time to buy. And if you can’t afford to buy just yet, take heart. With prices settling to non-inflated levels, you can look forward to good value for money spent—which Mexico has always offered—when you can afford to buy.

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Best regards,

Glynna Prentice
Editor, Mexico Insider
International Living
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