Mexico’s housing market remains healthy
So you’re hoping to buy or sell a home and want to know what the housing market forecast is like—especially after such an unpredictable year. Well, keep in mind that no one can predict what’s going to happen with 100% accuracy. But we can check out what real estate experts are seeing and make some guesses about the future from there. (Hint: It’s looking strong!)
While the pandemic did disrupt home sales in the spring of 2020 (which is usually considered the hottest season for real estate), the market quickly made an impressive rebound. Real estate experts have reported that the surge in home sales toward the end of 2020 actually made up for the spring market losses.
Foreign demand is robust. American and Canadian buyers have been returning to Mexico, year after year., For all these reasons, Mexico is home to the biggest established populations of American expats in the world. More than 1 million Americans live in Mexico, and more than 500,000 own homes here. These expats are enjoying a low cost of living at today’s exchange rates, while new arrivals are getting great property bargains. Real estate trades in U.S. dollars or Mexican pesos, depending on the region. It’s the peso-priced properties that offer dollar-shoppers increased buying power. In the past year, the value of the Mexican peso (MXN) depreciated by 9.7% against the US dollar, to reach an average exchange rate of USD 1 = MXN 20 in April 2021.
Also, the secret is Mexico’s enormously strong domestic market, particularly the rising middle class. In 2019, the country’s middle class was estimated to account for almost half of the total households, at about 16 million. They are expected to continue growing, with about 3.8 million more households projected to move into the middle class by 2030. Moreover, most Mexicans who move generally prefer to buy rather than to rent. Around 82% of Mexicans want to buy a property, as opposed to 18% that prefer to rent.
Let’s face it, we all dream of owning a vacation home in some exotic location where the sun shines brighter and the weather is warm all year round. Or how about a remote place for retirement where tranquility is the natural order of the day?
How to Buy or Sell With Confidence in Any Housing Market?
The housing market isn’t known for being simple to predict. That’s why it pays to have an expert in your corner. At Diamante we have top-notch agents who help you crush your housing goals—no matter what the market is doing.