Mexican real estate is booming while US market sinks

Though we here in the United States are still suffering with a turbulent real estate market, it seems that the housing market in Mexico is going strong. Many buyers see Mexico real estate as a stable alternative to the US's sluggish market, and find they can get much more "bang for their buck" there.


The country's big housing boom is attributed to six years of economic growth and stability. Mexico's housing market is more stable then the United States, and this is drawing in American buyers looking for investment properties or second homes. Mexico doesn't have the credit issues that our country sees because lenders don't offer sub prime mortgages and few homeowners refinance or flip their homes. Only 6% of the country's 25.7 million homes are financed compared to 67 percent of US homes, which means fewer loan defaults.

I recently met a couple who own property in San Carlos Mexico and are concerned about the impact the US housing market will eventually have on Mexican real estate. They've decided to sell their San Carlos vacation home now while the Mexico market is still hot, before the US housing slow down begins to trickle South. Then they plan to buy in Tucson while our market is more reasonable then it's been in past years.

I've met a lot of people that chose to buy second homes in Mexico. Puerto Penasco Mexico, or Rocky Point as most people know it, has seen an incredible amount of growth lately as new condos continue to go up to accommodate investors from the states. Rocky Point, which is actually a small fishing town, is just 4-5 hours Southwest of Tucson in Sonora Mexico. The climate there is very similar to that in Arizona; sunny and dry but Rocky Point has the ocean and water sports! It's located on the Sea of Cortez , and many people find it the perfect weekend escape. Eight to ten years ago property was dirt cheap in Rocky Point, but the area's popularity has driven demand and prices up. Nothing beats a vacation home by the beach, mountains and ocean!