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San Miguel de Allende´s Real Estate Market Continues Strong

San Miguel´s real estate market continues strong through the first half of 2023. Sales are just slightly below the pace of 2022, and sales of homes over a million dollars is slightly more than the same period in 2022.

However, there are some trends that we are watching, particularly the growing inventory and the value of the peso.

The Period from January 1, 2023 through July 31, 2023

• $602,126 Average Price of Properties put Under Contract
• $561,097 Average Price of Properties Sold
• 37 Total Properties Sold for Over $1,000,000
• $597,597 Average Price of New Listings
• 255 Total put Under Contract
• 275 Total Sold
• 634 Total New Listings
• 289 Total Price Reductions

Observations

• There doesn´t seem to be much movement up or down regarding the average price of properties that sold.
• For the first time in many months, the average price of new listings is comparable with the average price of properties sold in contrast to being way above the average price of properties sold.
• The number of sales over a million dollars is slightly above where we were this time last year.
• The total number of sales is only slightly down compared to last year.
• The inventory of properties for sale has increased every week of 2023, with a total net gain of more than 300 properties.
• Another trend that I have observed is that even though sales are continuing at last year´s pace, I believe that every agency, including Realty San Miguel, has taken far fewer clients out to look at properties than in previous years. Let me explain.

A large portion of the demographic who purchases a property in San Miguel de Allende are pre-retirement age to post-retirement age. However, the process of figuring out where they actually want to live, how it will affect family, their finances, whether they would be here full time or part time often takes several months, if not years, and perhaps includes trips to other possible cities. It has not been uncommon for us to work with clients who visit every few months or years until they finally figure out what they want to do with the rest of their lives. I remember one couple who I showed properties every year for four years. Then they decided to rent for a while and two years later they called me and said that they were ready to buy.

The reason I explain this process is that it seem that either because of the pandemic, the increased costs of traveling, and the fact that much more investigation can be done via the internet than before, many clients are doing much more of their exploring online than in person and have already decided on San Miguel when they arrive.

If you are still in the process of exploring your possibilities, all of our agents are happy to help you wherever you are in the process. Whether an exchange of emails answering questions, phone conversations, or actually going to see a few properties to see what your options would be in San Miguel. We understand that you are in a process and are happy to build a long term relationship with you and then be there for you when you are ready to purchase.

The orange in both of the charts below show so new listings compared to properties actually sold. The first chart is the dollar value and the second chart shows the number. Just as a reminder, all of the data we track are based on re-sales and don´t included newly built units in developments.

What to Watch

• Inventory levels – If inventory levels continue to increase this will put downward pressure on prices. However, if the number of sales continue to remain strong, that would off-set downward price pressure. Unless inventory levels or sales numbers change substantially I would anticipate that prices will remain around the current levels.

• Value of the Mexican Peso – If you are not aware, the Mexican Peso has gained around 20% against the USD since the beginning of the year. How this will affect housing prices is based on what it would cost to replace the house. Or, if you are building, since most everything is priced in pesos, it will take more dollars to buy the same amount of pesos. If the peso continues to gain strength, this means it takes more dollars to buy the same amount of materials and labor and will put upward price pressure on homes priced in USD.

San Miguel

San Miguel is a wonderful city with a pleasant year round climate and an abundance of award winning culinary and cultural diversity. For the third year in a row, in October of 2022 San Miguel won Conde Nast´s Readers Choice Awards as the Best Small City in the World.

San Miguel is easy to get to flying and increasingly more people are driving here again, particularly from the south. Just this week, the federal government indicated that San Miguel is one of three cities in Mexico where they are considering building new international airports with money they already have set aside. This will be a game changer for San Miguel de Allende.

Whether you are moving here full-time, just wanting a place to escape, or looking for a pleasant destination to park some of your money, San Miguel de Allende is a wonderful place and we would be grateful for the opportunity to work with you.