5 Top Riviera Maya Real Estate Trends 2021

5 Top Riviera Maya Real Estate Trends 2021

2020 was a surprising year for real estate in Riviera Maya real estate. Many have asked me what do I see is in store for 2021?

While Covid settled in 2020, we thought our market would just dry up. Contrary to that, 2020 proved to be a very strong year for real estate in Playa del Carmen, Tulum, Puerto Aventuras, Puerto Morelos. Will we see more of the same results in 2021? Whether you’re selling, buying, or staying put, here are some 2021 real estate trends that are important to you.

These are just my views based on my experiences of 16 years here in Riviera Maya and also reading based on what is going on in the US, or strongest neighbor.

Riviera Maya Real Estate Trend #1: Slim Pickings for Home Buyers

Okay, this is probably the most difficult to believe: It’s true, the desirable properties got snatched up in Covid. Really cool properties that you always saw for sale online, have now been sold. New products are still coming in line sure, but we still see less growth of new than in previous years and higher absorption of the great location resale properties.

But don’t worry, we’ll walk you through what to expect if you enter the market.

What Slim Pickings Mean for Buyers

Low inventory means you need to be prepared. It also means you should trust what your agent is telling you about the market not just what you “see online”.

We KNOW the truth of the market status. We live here and work it full time.

The internet is a big messy advertising medium for Riviera Maya Real Estate with a high inaccuracy of price and availability. ASK us, we can verify the true status for you of any property.

  • Somethings’ gotta give. If you can’t find the property you want, be willing to trade some “nice-to-haves” for your “must-haves.”
  • Be open to other possibilities. What if the location where you’re planning to buy is too competitive? You might be surprised at the gem in a less popular neighborhood. Working with a real estate agent at LivingRivieraMaya.com who really knows the area is the best way to find a home that fits your budget and lifestyle.
  • Be clear about your finances. This is primarily a cash market. VERY few options for mortgages to foreigners. Know what you can afford in cash and the timing of when funds will be available.

Contact US, your real estate experts in Riviera Maya

Riviera Maya Real Estate Trend #2: Prices.

In the US in November, home prices grew by an incredible 15% compared to 2019. We can’t say that here, yet. Price homes in the US rose to a national median of well over $300,000. This marks more than 100 straight months of year-over-year price gains. This is partly the reason for our increased velocity of Playa del Carmen real estate transactions, and other Riviera Maya real estate destinations. Investors had more available cash to float from their primary residences to invest in Riviera Maya Real Estate.

What I can foresee for 2021 is that the speed with which Riviera Maya real estate is bought and sold should continue to increase, as long as PRICES are reasonable. Why do I say this? Real estate in Playa or Tulum is still primarily a cash-based, second home market for investors. Keep your prices reasonable when selling to make it accessible for these reasons.

What Prices Mean for Buyers.

Be real with how much house you can really afford.

Don’t make stupid low offers if you really want to own that ONE. We have seen some disappointed buyers who worked hard at looking and deciding, only to go away empty-handed because they were looking to steal property because of Covid. Yes, due to Covid we did see some flexible sellers, but not stupid low prices.

For more help on buying a home in this crazy market, check out our free Home Buyers Guide. It has all the answers you need to buy a home in Mexico with confidence.

What Prices Mean for Sellers

If you have been trying to sell for a year or more, this is good news. You can expect to accomplish this goal as long as the prices are reasonable.

To get the best offer for your home, list it with us, an experienced real estate agency that really knows your local market.

Having said that, be sure to work hard with any offer that comes in so you don’t lose an opportunity.

Some buyers may try to gut punch you with a low number. Work it, don’t ignore it.

We have seen some really low offers turn into really serious negotiations that close and I believe this will continue to be the case for 2021.

Riviera Maya Real Estate Trend #3: Mortgage Interest Rates In the US Are Still Super Low

Bottom line? This means you can take out a line of credit on your existing home there and buy a home in Playa del Carmen or Tulum or Puerto Aventuras.

We see more people wanting out of the cold and into the warmth; more people can move their dreams forward, rather than wait; many people are tired of being confined and want the warmth and openness of Mexico.

The average mortgage interest rate for a 15-year fixed-rate mortgage dropped to 2.31% in November 2020—the lowest it’s been since Freddie Mac started reporting nearly 30 years ago!

And now economist geeks think interest rates will continue to hover around 3% in 2021, which is still pretty low.

This represents a good chance to cash out there and buy a home in Playa del Carmen or Tulum or Puerto Aventuras or anywhere in Riviera Maya.

What Lower Rates Mean for Buyers

Sure, interest rates are low right now—which can help you get into Riviera Maya Real estate market. Just be careful to calculate how much you can afford and let us know truthfully.

What Lower Rates Mean for Sellers

If interest rates stay low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer.

Riviera Maya Real Estate Estate Trend #4: Online Real Estate Services Are Growing

No doubt you’ve heard of real estate services like Zillow that allow you to browse or list homes for sale online with the click of a button. But did you know that online services are now offering to buy and sell your house for you?

We Offer Services as “Virtual” Agent

It’s a great way to view a property or get to know an area. Book an appointment with one of my trusted experts to get started. We dedicate the time and energy to you to show you real-time what a property can look like, distance to the beach, distance to town, restaurant facades, whatever you want to see.

In 2020 at LivingRivieraMaya.com we saw an increase in online closes by 45% over previous years. Some people had never even been to the town they purchased in and not physically seen the home prior to closing.

I see this as a continued trend in 2021, especially for those Canadians who are must quarantine for 14 days when returning from travels.

Online Closings

In related news, digital technology is also making it easier to handle document-based tasks virtually. For example, many home transactions are using electronic signature apps and remote online notarization to streamline the process.7 In other words, there’s a chance you can buy or sell a house this year without getting out of your car or ever-changing out of your bathrobe and slippers.

Real Estate Trend #5: Confidence

Equity probably won’t decrease through 2021.

With most housing markets at low risk for a downturn, Freddie Mac (US) believes home prices will continue to rise in 2021—but at a slower pace of nearly 3%.

Real Estate in Riviera Maya usually follows tourism and tourism is buoyed by the US economy and the economy in the US is a lot driven by real estate equity.

Does this mean a strong velocity of sales in Riviera Maya real estate for 2021? If we just base our predictions on all the above, yes. However, there are always mitigating external factors that we cannot predict.

A real estate market crash looks unlikely.

With all the uncertainty behind everything that happened in 2020 and with home price growth possibly slowing down in 2021, you might be wondering if the housing market could collapse. Well, it’s impossible to know for sure, but economists suggest a housing crash is unlikely. Again this = CONFIDENCE.

After all, the super-low mortgage rates are motivating investors to bring some cash from the US or Canada and enter the Playa del Carmen real estate market, which increases demand. Many investors and buyers are looking to move full time to Playa del Carmen or Tulum.

But there’s still a very low supply of home listings. This is keeping home-buying competitive and allowing home price growth to soar.

Take Control of the Trends With a Top-Notch Real Estate Agent

Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent at LivingRivieraMaya.com

Find your real estate agent today!

Differences in buying real estate in Mexico

It was a culture shock for me at first when I moved from BC Canada as a licensed real estate agent to Playa del Carmen in 2003 to see the differences in how business is done between BC and Quintana Roo.

 

Now that I have so many years of experience as an owner/broker of a real estate company in Playa del Carmen, the practices are second nature.

However, I understand how foreigners feel when they cross the border and venture into the real estate market in Mexico.
It is our role to give you the education and information needed for you to make your own best decision when purchasing a property in Playa del Carmen or Tulum, Mexico.
 

What are some of the differences between buying real estate in Playa del Carmen and Riviera Maya Mexico vs buying real estate in Canada and USA?

First, it’s important to know who you are working with and how they do business in Riviera Maya.
How experienced is the agent? Do they work with a reputable firm? References? Are they licensed to sell real estate in Riviera Maya?
Many “agents” are independent, with no real estate education or training, no experience, and no understanding of the fiduciary duty to you the customer.
They are acting in their own interests, not yours. Be aware of this.
The laws, the culture, and the language are different.
Here are LivingRivieraMaya.com  we work in a Canadian model of real estate.
I am the broker of my company and I have 5-7 buyer agents working at the agency. They meet with me and I am responsible for their actions. They work for you the buyer with your interests at heart.
Since late 2014, there is a law in Quintana Roo that requires anyone selling real estate in any capacity should be licensed.
Since early 2016 I have license number 83.
In all Quintana Roo,  there are only about 285 licensees,  where there are about 2500 “agents”.
Most “agents”  have no training,  no education,  and little experience, yet many foreigners trust them with a big investment.
For an agent to acquire a license to sell real estate, there is an educational component of the license that takes several months to complete. Then there are steps of the government agency to become licensed. An agent must renew the license every year with 30 hours of continuing education!
This is one of the biggest differences in real estate in Quintana Roo and Quebec – the lack of regulatory enforcement of licensing.
Know who you are dealing with.
Next, the big difference is that there is NO central MLS where all properties are listed for all agents/ clients to search and see.
There are a million different agent websites, and it’s very confusing because you can see the same property listed 5 times at 5 different prices.
Keep in mind that just because you see it online does not mean its an accurate price or even that it is really for sale.
We have access to all the properties and can show you any listing by anyone.
We verify the true status of the property for you that saves you time money and energy.
There is a definite need to find and work with an experienced professional real estate agent when buying a home or a condo IN Playa del Carmen or Tulum or anywhere in Riviera Maya.
Another major difference is here in Mexico we are primarily a cash-based market.
Meaning the price you see is the price you pay in cash (wire transfer), from your own resources. No bank financing in Mexico for foreigners.
A very important consideration for owning real estate in Mexico is that the roles of notarios and lawyers are somewhat different.
Lawyers legally represent you at the purchase contract level and liase with the notarios throughout the closing process to ensure you receive a clear title.
Notarios, by comparison, are lawyers with many years of experience. Then there are specialized courses and exams for notarios. Once all that is passed, a notario may be appointed by the governor of the state. It is a lifetime appointment.  There is one notario for 30,000 in each location.
 
What makes the notario so special in any real estate transaction?
Notarios are the only authority that can create a new deed,  or convey deeds between parties. They are also the person to assess and collect and pay any capital gains tax for the seller. The onus is on the notario to pay capital gains tax, not the owner.
If I were an investor like you reading this,  I might be daunted by this information.
Rest assured,  that when you want to own real estate in Mexico, at LivingRivieraMaya.com, we have served customers like you to ensure you have a smooth enjoyable process. You will make a safe and secure real estate investment in Riviera Maya.
Judi Shaw
Owner/Broker
www.LivingRivieraMaya.com
1 604 628 7247 direct
1 760 994 1716
+(52) 984 116 3251 Mex cell

More than a Beach: The top 10 things to do in Riviera Maya

Cenote in Riviera Maya
As much as one enjoys going to the beach on vacation, sometimes it’s good to switch it up and experience something different. Maybe on a certain day, you are feeling a little sunburnt? The great news with the Riviera Maya is there is so much to see and do, that it is nearly impossible to experience it all. There are many activities that one can only experience in the Riviera Maya and that is what makes this place so unique. Let’s take a look at the top 10 things to see and do in the Riviera Maya when you want to switch up a beach day:

Continue reading

Benefits of buying a Re-Sale Property

We can show you any property that interests you in the Riviera Maya. There is no need to look with many agencies. We will show you any pre-construction new condo project, and any already built properties.
Most important is to find the right property, at the right price for you.
Often we see that resale properties, already built, are overlooked by our investors in favor of a buying pre-construction property.
Why?
Many people are pre-sold on the belief that pre-construction is “the best deal” out there.
However, this can often be a misconception. The savvy buyer understands the following:

  • There are great deals available on resale properties. Prices often can be lower than a pre-construction property.
  • It’s our specialty to know and show you the market.
  • Use of escrow when paying for a property means funds are protected.
  • No risk of paying a developer directly who might not complete a pre-construction project.
  • You know what you are buying, such as the condition, the colors, the appliances, etc.
  • With pre-construction properties, what if it does not turn out the way you thought?
  • Often resale properties are fully furnished, as added value.
  • Buying furniture can be considerably more expensive than anticipated for new construction.
  • Resale is ready for immediate personal use.
  • There is no waiting period for construction to finish as with pre-construction.
  • It has the HOA (homeowners association) established, you will know the cost of maintenance, pool work, yard work before you negotiate on the transaction.
  • It has a property tax value established.
  • You purchase in an established neighborhood. You know what is around you.
  • Streets, lights, neighborhood parks, and restaurants are established.
  • Resales offer a shorter timeline to close on the transaction,  get the deed from the
    notary and you get the keys. NO waiting time for those important items.
  • Bring your suitcase and open a cerveza. Turn-key ready.
  • You KNOW what you are buying. No mystery involved.

SOME THINGS TO CONSIDER WHEN BUYING A RESALE:

  • You will have to pay for it all time of purchase upfront, no payment plans.
  • You might want to renovate to your liking.
  • Hidden cost upgrades? Use Property inspection.

Ready to make an informed decision? Check out our Riviera Maya Re-Sale Listings

Tulum or Playa del Carmen as an Investment Option

You have picked two of my favorite places to invest in the Riviera Maya. Both are great investment opportunities for different reasons, and being in close proximity to either place, you can’t go wrong with investing in Tulum or Playa del Carmen. This article will show you the advantages of investing in Playa del Carmen and the advantages of investing in Tulum. Continue reading

Say Goodbye To Sargasso And Hello Again To Our Beautiful Beaches

For those of you who are unfamiliar with what Sargasso is, it is basically seaweed that has washed ashore. The seaweed is caused by climate change and different wind patterns. The warmer the water, the more the seaweed spreads around the Caribbean. Continue reading

Buying Real Estate in Mexico

PLEASE BE CAREFUL WHEN LOOKING TO PURCHASE REAL ESTATE IN MEXICO

Although having a real estate license IS REQUIRED in Playa del Carmen and all Quintana Roo, according to a law passed in 2015, it is estimated that only less than 1% of those who are selling real estate are licensed. Continue reading