Rocky Point Buyers Market Beckons
April Report from our AMPI President
Kent White
Realty Executives
A.M.P.I. President
In the ever cyclical world of economics we certainly see the seasons change. This is evident especially as it refers to real estate. Many people, sitting there with their glass half empty continue to refer to our stage in the cycle as the Fall or Winter. However, as we have seen by recent indicators, the excitement is here. In Rocky Point’s market, those who look past what the press from the north tells us, continue to do well. Agents and buyers alike that don’t see the doom and gloom see the potential of a shifting market. Let’s face it, as it applies to Real property there are two markets, buyer’s markets and seller’s markets. Sure we saw some hard times for awhile, this is what is called the correction period. We needed it. We had a fever during the initial boom that laid the foundation for our long term growth period. Economists still see Puerto Peñasco as one of the fastest growing, and long term growth destinations in Latin America. All of the studies done on both sides of the border by different experts on our specific market agree we are destined to be an international powerhouse. None of them said the chart would be a straight upward line. With the same logic, we should not expect to follow the same curve as the United States. We are a second home community and an investment community. Many of the baby boomers with the notion of retirement in their sight still see the need to invest, and this is a great time to invest as there are many deals to be found. Many people that have the fortitude to buy a second home are not affected by the issues that have used up so much ink in the papers lately. And some that overbought need out. Rocky Point’s resale market right now has numerous condos, houses and land listed at below their true value. This is not to say that everything is priced to sell, but with proper representation and patience, now is a great time to learn what is available and understand that there are special deals popping up everywhere.
Resort communities do not reflect the same dynamics found in markets of need.
Many of us that took the ride for several years understand the market was in its infancy, as a highly attractive resort community with beaches that hold their own against any comparable destination. In a booming economy both buyers and sellers are happy, with fresh new products unveiled monthly. Unfortunately, because the wave was so fast and furious many surfers saw the wrath of the wave’s downturn. The wave was building so fast and developers saw no reason to level out prices since the buyers kept coming. Some less rooted investors that may have gotten in late have reasons to get out. This created the buyers market that many savvy investors are taking advantage of now. The excitement is here, and deals are being made. Right now the resale market is showing huge promise, and professionals in the know are feeling the buzz.
When looking at the big picture one must only look at what Rocky Point has coming, to understand the future is just beginning. This is obvious by the time and money the officials are investing here. Janet Napolitano and Arnold Schwarzenegger and all of the other governors from the border states of the US and Mexico did not choose to meet here because it was convenient. The Coastal Highway and the Airport are soon to be a reality. The Municipality is paving more roads than ever before. The Marriott Hotel group has introduced The Peñasco Bay Towers, a 28 story 265 room four diamond hotel. This alone would certainly add to the international attention.
Recently, Sonora authorities and Federal authorities met with the decision makers of several cruise lines, including Carnival and Holland America to fine tune the plan for future cruise lines to include Puerto Penasco in their itinerary. Epifanio Salido Pavlovich introduced the proposed Cruise ship route through the Sea of Cortez, which includes the creation of a terminal in Puerto Peñasco.
"Soon we will have the visit from the delegation and the Florida Caribbean Cruise Association for Puerto Peñasco to revise the draft as Home Port and Guaymas to see the progress of infrastructure that is taking place at this time, as well as tours yet to be defined, and training for health care providers in the locality," he explained.
With all of this and so much more, we will be a preferred destination for tourists and investors alike for many years to come. The Spring is here, and we are still in our infancy. This market will not be crashing anytime soon. In fact economies not scared by the media have continued to look for investments in this paradise some of us call home. Canadians and many Mexicans from around the country as well as those living in the US are looking this way for the bargains. It is important for investors to find reputable representation that will educate them through the research stage as there is a wide variety of options; Good and bad. In a time considered to be a buyers market there is a surplus of inventory. The available condos, homes and land are so diverse that you need a seasoned representative. There are plenty of agents in this town with credentials you can trust. If an agent is an AMPI member, for example, he or she is a state recognized, licensed agent. The most important thing that a buyer or seller gets with an AMPI affiliated agent is accountability. This accountability will make the difference between you looking back and knowing you found one of those bargains, or one of the many less than adequate outcomes that happen to would be investors everywhere. It would be irresponsible to stress that if one doesn’t jump now they’ll miss the buyers market. But it could also be wrong to think that this market is going to keep sliding for a long time. Even in the US market of today savvy investors are currently buying, hence the term buyers market.