When is The Best Time to Buy Homes for Sale in Mexico (2024)

FAQs

Are home prices dropping in Mexico? ›

Year-on-year prices were up by 7.7%, 8%, 9.4% and 10.4% in the four quarters of 2022. The upward trend is expected to continue in 2023, according to analysis by Mexican bank BBVA, even though demand is now starting to drop.

Winter is usually the cheapest time of year to purchase a home. Sellers are often motivated, which automatically translates into an advantage to you. Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.

First semester 2023. With growth of only 0.4% in 2022, the recovery of the Construction sector remains distant. The number of mortgage loans granted during 2022 is 8.9% lower than in 2021, while the amount fell 4.9% in real terms.

Most listings hit the market in a short window between the months of April and June. If you're planning to buy in a market with harsh winter weather, May and June typically have twice as many active listings as December or January. However, in temperate markets this springtime pattern is far less noticeable.

The Riviera Maya tourism industry is again thriving due to the post-lockdown tourist rebound. If you want to benefit from Mexico's record-breaking ROI shift entirely, now is the time to purchase real estate there. The local real estate and vacation rental sectors receive the money as soon as it arrives.

The real estate sector in Mexico could have growth of up to 1% in 2023 and the figure could even be much higher in the 10 submarkets where tourism predominates. This is according to Gene Softec, executive partner of Softec, a firm that is dedicated to real estate research.

Generally, home prices are lowest in January because demand is low, inventory is low and fewer buyers are looking for homes. While January might be the best month to get the lowest price on a home, you pick from a smaller selection of homes.

Sellers can net thousands of dollars more if they sell during the peak months of May, June and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

The current exchange rate in Mexico is 18 to the US dollar — so with that in mind — the average house in Mexico can range anywhere from 1.3-million pesos to 18-million pesos, depending on its location, size and amenities.

Can you negotiate house price in Mexico? ›

Negotiating the final price for a lot can be tough. If you are working with an individual seller, they might not negotiate, or they may raise the price on you (this happened to us three times). If you are buying property from a community development, they might be more lenient.

Investing in real estate in Mexico brings with it several economic benefits. Being able to rent properties for foreign vacationers in US Dollars or resell the properties in that currency generates a much higher return on investment, since the US Dollar maintains its value around 20 times greater than the Mexican peso.

The best age to buy is when you can comfortably afford the payments, tackle any unexpected repairs, and live in the home long enough to cover the costs of buying and selling a home. Legally, you must be at least 18 in most states to buy a home.

“Listing a property on Thursday and Friday makes the listing look fresh,” says San Diego Realtor Jessica Nguyen of Homesmart Realty West. “Sellers don't lose any market time by listing a property on either of these days.”

But generally speaking, FRIDAY is the best day of the week to submit an offer on a home. Include in your offer a short acceptance period and try to have it under contract, at the proper terms, before the end of the weekend.

The Cheapest Time to Visit Mexico

The months between July and October generally tend to be when you can score cheap accommodation prices, as low season means rates can drop as much as 40 percent. September is considered one of the cheapest months to fly to the coastal areas and major cities in the south.

When buying a home in Mexico, you must pay the Property Acquisition Tax (ISAI). These tax rates differ in each Mexican state. They can range from 2% to 5% of the value of the property.

According to the CoreLogic HPI Forecast, home prices are projected to continue their upward trajectory. The forecast indicates an expected month-over-month increase of 0.8% from March 2023 to April 2023 and a year-over-year increase of 4.6% from March 2023 to March 2024.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

What are the real estate challenges in 2023? ›

It typically takes anywhere from four weeks at the low end to six months (or more) to shop for and close on a house. But it can be quicker if you make a strong offer right away in a fast-moving market or slower if you have a hard time finding just the right place or keep getting outbid.

Real estate agents suggest you stay in a house for 5 years to recoup costs and make a profit from selling. Before you put your house on the market, consider how your closing fees, realtor fees, interest payments and moving fees compare to the amount you have in equity.

Typically, mortgage lenders want you to put 20 percent down on a home purchase because it lowers their lending risk. It's also a rule that most programs charge mortgage insurance if you put less than 20 percent down (though some loans avoid this). But it's not a rule that you must put 20 percent down.

Most collapsed house sales happen before exchange. The reason for this is simple, once you've exchanged contracts there is the risk of losing large amounts of money if a sale falls through.

Thousands of sellers have been in the exact position you are in right now and the first question they always have is: “Will this house sell for less because it is empty.” The short answer is yes, empty houses do take longer to sell than furnished, occupied or staged homes.

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

Buying a home during a recession can sometimes be a good idea — but only for people who are lucky enough to remain financially stable. If you're thinking about buying during an economic downturn, be sure to enlist the help of an experienced local real estate agent.

Investing in Mexico real estate is a safe investment and the best way to protect your money in times of crisis. If you are interested in investing in a property and you don't know where to start, here you will learn what it is, why you should, where the opportunities are, how much money you need and how to do it.

Is it worth buying real estate in Mexico? ›

Investing in real estate in Mexico brings with it several economic benefits. Being able to rent properties for foreign vacationers in US Dollars or resell the properties in that currency generates a much higher return on investment, since the US Dollar maintains its value around 20 times greater than the Mexican peso.

A two-bedroom house in Mexico City can range anywhere from $100,000 to $500,000, while a similar property in Tulum may cost upwards of $1 million. In Cancun, a two-bedroom home can range from $200,000 to $800,000, depending on the location and amenities.

Mexico is one of the countries in Latin America that has a low cost of living. One of the reasons why this country has a lower price compared to others is because of distribution costs and cheaper labor. In addition, the government has control over the prices of goods being sold here.

It is safe to buy property in Mexico! Foreigners can buy and sell property with ease, there are only a few special rules you need to follow when buying property, and strictly from an investment point of view, Mexican real estate has a great deal of upside potential.

One of the most common subjects on the issue of costs will undoubtedly be related to property taxes. To be clear, in Mexico, you will be responsible for paying some form of taxes. This is true if you own residential property, rent your property and earn income, or if you sell your property in Mexico.