Market Update

San Miguel de Allende Market Update February 2022 by Lilia Aguilar.

I have been working with Philip gathering San Miguel´s real estate sales data for a few months and also working with clients. Here are some highlights about February.

San Miguel real estate continues to see some heavy activity, at least in the volume of clients and sales.  However, prices have not increased as they have in many other cities in the US and Canada. 

MARKET ACTIVITY FEBRUARY 2022

Observations

• The average sales price of homes priced increased 14% to $569,759 USD compared to February 2021’s $485,867 USD. This average is more reflective of two multi-million dollar sales in February than as a drastic increase of the average price as it first appears.
• We continue to see much higher than average sales of homes over a million dollars.
• The number of properties reported Under Contract in February is almost three times the number of reported in February of 2021.
• Although we are starting to see prices slightly increase for homes that are well located and in better than average condition, the main indicators we see as sales activity increases are that there is less negotiation on the actual sales prices compared to listing price and there are fewer price reductions during the listing period.  This is evident by comparing February 2021 where the actual sales prices were 16.2% below asking to just 1.9% in February 2022.

Other Influences

• Covid map goes green for all of Mexico – According to Mexico´s daily news, “Mexico Goes Solid Green.” on coronavirus risk map.  This means more freedom and more chances of traveling to San Miguel. Restaurants will allow 100% capacity, no restrictions on service time. However, San Miguel is one of the Tourist cities with a more conscious culture. Residents and tourists care about keeping the city a nice place to visit/live.  Even though life is going back to normal, many people on the streets wear masks and to enter a public building it´s still mandatory.
• USD to Peso Exchange Rate  – The US dollar reached $21.30 MXN in February, according to Banxico. This means foreigners receive more pesos for their dollars, or as we like to say – More Life for Less Money!
• Simplified Visa Process – In response to the global pandemic, Mexico has made it easier for foreigners who work via the internet to obtain residency status here.  This is attracting a new demographic of people and also a younger demographic compared to the typical pre-retirement and retirement demographic.
• San Miguel de Allende Nominated the Second Friendliest City in the World- According to Condé Nast Traveler magazine, San Miguel was nominated to be the second friendliest city in the world along with Singapore and Marrakesh. This gives free publicity all over the world and people will want to visit and live San Miguel´s magical experience.
• Country Homes and Properties – For ten years the majority of people who came to San Miguel wanted to buy in the city center and be close to all of the activities.  Today, countryside life has become popular again and in the last month, 11% of properties sold were in the country. Raw land is increasing in value and countryside communities like, Los Senderos, La Candelaria, Rancho La Loma, Santa Matilde, Taboada & others that are only a few minutes from town are seeing lots of interest. . Don't discard the chance to look at properties out of town or in the gated developments that are on the outskirts.

I hope this information and statistics are useful and give you a better idea of what’s happening in the San Miguel de Allende Real estate market.

Lilia Aguilar

To read more about covid status, follow the Link. https://mexiconewsdaily.com/news/coronavirus/mexico-solid-green-coronavirus-map/?utm_medium=webpush&utm_source=jeeng

To read more about the Condé Nast Traveler issue, follow the link. https://www.cntraveler.com/gallery/2015-08-14the-2015-friendliest-and-unfriendliest-cities-in-the-world

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