There are many ways to measure a market. By all indications the real estate market in Puerto Vallarta is booming. Sales volumes are on the rise, average sales price is remaining stable, and there are strong housing starts (http://ryandonner.com/2017-real-estate-market-summary/).
But when you employ more advanced trend-measuring tools to analyze the market, they reveal that the percentage change in average active listings, average units sold, average volume sold, and average units under contract are all trending down (using a 12-month smoothing factor measured over 4 years – chart shows most recent two years).
As opposed to Fall of 2016, when the market really began to heat up, Winter 2018 is showing a slowing trend line. While this doesn’t always indicate a cooling market, it does signal that prices are approaching the top of what the market will bear. As the percentage change in the average unit price and in average new listings continues to grow, and the other indicators fall, prices will need to stabilize or drop in order to maintain a strong and healthy market.
In the meantime, there is still great value to be found in the Puerto Vallarta real estate market, and plenty of opportunity in expansion areas outside the tourist core.