This is one of those blog entries that is anything but timeless. This window that highly favors buyers purchasing property in Puerto Vallarta at this exact moment has not been open for long and it could close at any time. However, I posted a reel about this and there were too many additional details to list out for anyone who may not be aware of the current circumstances, so here we go. Before diving in, I want to note that the date of publication is August 2024. Additionally, please keep in mind that purchasing a property is a huge commitment, and should not be rushed if you are not ready. The purpose of sharing this information is primarily so anyone who is already interested in buying real estate in Puerto Vallarta, Mexico is aware of the current favorable conditions that will save you significant chunks of money, and provide you with solid leverage in negotiations.

Puerto Vallarta has long been a favorite destination for tourists and retirees alike, thanks to its stunning beaches, vibrant culture, and picturesque surroundings on Mexico’s Pacific Coast. However, in recent years, this beautiful city has also become a hotspot for savvy real estate investors. If you’re considering purchasing property in Puerto Vallarta, now is the ideal time to make your move. As an experienced real estate agent specializing in investment property in this attractive destination, I want to share with you five compelling reasons why there’s no better time than now to buy property in Puerto Vallarta.

1. The USD to MXN Exchange Rate is the Best It's Been in Years

One of the most significant factors that make purchasing property in Puerto Vallarta a unique opportunity right now is the favorable exchange rate between the US Dollar (USD) and the Mexican Peso (MXN). When I moved here in July 2017, the exchange rate was at 17.5 pesos to the dollar. This was surprising to me because I had previously visited in January of that same year and enjoyed a 21.5 peso to the dollar exchange rate. This difference was significant. One of my first courses of action was to purchase a vehicle with my savings of United States Dollars (USD), which cost me $2,000 more than it would have if I had purchased it in January at the more favorable rate. But, what was I going to do? I needed a vehicle at that moment, so I had to deal with it. If it makes that much of a difference with a purchase like a vehicle, imagine the impact in can have on a larger scale purchase like a property.

In recent years, the exchange rate has fluctuated drastically, and is impacted by large events that cause economic shifts. For example at the onset of the COVID-19 global pandemic in March 2020, the exchange rate shot up from 18.5 MXN pesos per US dollar to a whopping 25 MXN pesos per US dollar. After the conditions of the pandemic subsided, the market has stabilized and the exchange rate slowly fell, dropping as low as 16.5 MXN pesos per US dollar in April of 2024. Recently relatively immediately after the Mexico Presidential Elections took place in early June, the peso weakened and the exchange rate rose and has been hovering at between 18.5 and 19 MXN pesos per US dollar. Chances are the next big economic shift will take place after the US elections in November. 

Source: banxico.org.mx (Official Bank of Mexico)

1/ To obtain more information regarding this exchange rate see: The Third Title, Chapter V of the regulation 3/2012 from Banco de México (Available only in Spanish).
2/ The FIX exchange rate is determined by Banco de México on banking days, by an average of quotations of the exchange market of wholesale operations to be settled on the second banking day of its determination. Banco de México informs the FIX from 12 o’clock onwards each banking day.
3/ The FIX exchange rate mentioned is published by Banco de México in the Official Gazette of the Federation on the next banking day of its determination.
4/ If you have to make a payment today, to calculate the equivalent amount in pesos of the obligations entered into in U.S. dollars that are to be paid in Mexico, you would have to use the exchange rate published by Banco de México on the Federal Official Gazette the banking day immediate before.

Either way, exchange rates have consistently provided North Americans with an excellent purchasing advantage. With the current rate being one of the best in recent memory, your dollars can stretch further, allowing you to secure prime real estate in this popular tourist destination at a fraction of the cost compared to other locations.This favorable exchange rate not only makes property more affordable but also enhances the potential return on investment (ROI) for international investors. Whether you’re looking for a beachfront condo with stunning ocean views, a second home in a vibrant local community, or a long-term investment property, the current exchange rate is a golden opportunity to maximize your purchasing power.

2. Homebuyers Do Not Pay Commission in Mexico

In November 2023, the National Association of Realtors (NAR) in the United States reached a settlement with home sellers that effectively changed the landscape of real estate agent compensation. This settlement prompted the introduction of the new Buyer’s Agreement, going into effect on August 17th, 2024. Buyers in the U.S. will now be more directly responsible for commission fees, making the Mexican model, where the seller bears this cost, even more appealing to homebuyers. However, because the US seems to set precedent in many industries, it is possible that Mexico may adapt this transition at some point in the future. As of now, this added buyer expense does not exist in Mexico. 

For those looking to invest in Puerto Vallarta, this structure can significantly enhance your return on investment. With no buyer’s commission cutting into your budget, your investment in vacation rentals, a second home, or long-term real estate can yield a more stable source of income. Whether you’re focused on capital gains or rental income, Mexico’s commission-free buying process is a considerable advantage in today’s shifting real estate landscape.

3. It's Currently a Buyer's Market in Puerto Vallarta

Puerto Vallarta’s real estate market is currently experiencing a period that can be described as a buyer’s market. This means that there is a higher inventory of properties available than there are buyers, creating an ideal situation for those looking to purchase. When the market favors buyers, it typically leads to lower prices and better negotiating power, making it a great time to secure a property at a more affordable rate.

For those interested in making a real estate investment, this is an excellent place to start. The current market trends indicate that there are numerous investment opportunities available, from beachfront condos to new developments in growing areas. With a buyer’s market, you have the leverage to negotiate better deals and secure properties that align with your investment goals.

4. A Wide Range of Inventory to Choose From

Unlike the United States or Canada, where inventory can be limited, Puerto Vallarta currently offers a vast selection of properties across different price points and locations. Whether you’re seeking a luxury beachfront property, a cozy second home in the heart of the city, or an investment property with high demand during peak season, there’s something for everyone in Puerto Vallarta.

The wide range of inventory also means that you’re more likely to find the right property that meets your specific needs and budget. Whether you’re a first-time buyer or an experienced real estate investor, the current inventory levels in Puerto Vallarta provide a unique opportunity to explore diverse options, from ocean-view condos to charming villas nestled in lush surroundings. This abundance of choices ensures that you can make an informed decision and find a piece of paradise that suits your long-term investment strategy.

5. Upcoming U.S. Election Could Cause Economic Shifts

Lastly, it’s important to consider the timing of your purchase in relation to broader economic factors. With the U.S. election on the horizon in November, there is a strong possibility of significant economic shifts that could impact the favorable circumstances currently present in the market. Elections often lead to uncertainty in the financial markets, which can affect exchange rates, interest rates, and overall investor confidence.

By purchasing property in Puerto Vallarta now, you can take advantage of the current stable economy and favorable exchange rate before any potential shifts occur. This proactive approach can help you secure a better time to buy, ensuring that you capitalize on the unique opportunity present in the market today.

Puerto Vallarta is not just a beautiful city with stunning beaches and a vibrant culture; it’s also an excellent place for real estate investment. With the current USD to MXN exchange rate, the absence of a buyer’s commission, the buyer’s market conditions, the wide range of available inventory, and the potential economic shifts following the U.S. election, now is the best time to make your move in Mexico’s real estate market.

Whether you’re looking to invest in a beachfront condo, a vacation rental, or a second home, Puerto Vallarta offers a unique combination of affordability, high demand, and long-term investment potential. As a reputable real estate agent in this market, I am here to guide you through the process, helping you make an informed decision and find the right property that aligns with your investment goals. Don’t miss out on this opportunity to own a piece of paradise in one of Latin America’s most attractive destinations.

If you’re ready to explore the possibilities and take advantage of these favorable market conditions, feel free to reach out to me. Together, we can navigate the local market and find the ideal property that meets your needs and secures your financial future.