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.
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.
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