I am here for almost a week now and I will hang around for few days more; it’s sunny and the water temperature is perfect, the hostels are cheap (8 USD) and located on the beach, the party is good and permanent.
I wouldn’t stay here that long if not surfing though. Puerto Escondido has one of the best (and demanding) Mexican surf spots but there is lots of space for beginners as well. One of those places is La Punta, the place from the pictures below.