Want sun & fun? Still a Buyer’s market in Cabo. Glad to make intros/consult; esp. Nov-March. Here is a little report about the Cabo market from Martin Posch, Owner/Managing Broker of Windermere Los Cabos:
It is interesting reading all the positive real estate news up north. Here in Cabo we are normally one year behind the US on either side of a recovery. With that said, we are starting to see activity picking up and it looks like we are going to have a promising year ahead of us. Our inventory has started to decrease compared to 2011 and I think most of the distressed properties will be gone after this season.
It has been another interesting year here in Los Cabos and I hear very mixed signals from my friends. Some had a great year and some had the worst year ever. There is no doubt that it has been challenging for all of us.
Understanding that we are substantially down from sales volumes during our peak years (2004-2008), let's see how the numbers look in 2012 compared to 2011:
Although we have seen more sales, the total sales volume in dollars is down. We sold and closed 466 transactions this year, which represents an increase of 6.4%. If we look at the total sales volume of $174,044,847 Dollars, we see -22.5%. In 2011, 46 properties closed above $1,000,000 US Dollars. This year, through the first nine months, only 35 transactions of million plus properties were closed. This is a decrease of 23.9%. Our Median sales price is also down 18.2% to $209,300 US Dollars in 2012, and the average listing price was down to $730,700 US Dollars. The average sales price so far in 2012, is down 27.44% to $371,700. As you can see prices are still under pressure but it looks like the deep discount deals are getting rare. I believe we should start getting back to a more “normal” market as we move through 2013.
So if you or your clients are looking to buy a home in Los Cabos, I believe it is a great time to do so. In 2014 I can see the market shifting from a buyer’s market to a seller’s market again.
Major investments are coming back to Los Cabos. There will be a second golf course built in Diamante (Tiger Woods Design), and a Jack Nicklaus Course is being built as we speak at Pueblo Bonito Sunset. A new commercial plaza in front of the Country Club has started this month. The suspended luxury master planned projects at Chileno Bay and the Montage have been reactivated. A 196-room Park Hyatt Los Cabos will be located within a master planned golf resort community and is expected to open in 2015. A Lowe’s store will be starting construction by the end of this year or early in 2013 in Cabo San Lucas.
As you can see, there are billions being invested right now in Los Cabos and that bodes well for a more optimistic outlook for the near future.
I hope this statistical overview on our Real Estate market gives you a snapshot of the state of the market. For more details on the market don't hesitate to contact me.
Windermere Los Cabos
Plaza Paseo Los Arcos, Suite B-6,
Col Cabo Bello
Cabo San Lucas, BCS 23455, Mexico
Office: +52 (624) 131-3330
Cell: +521 (624) 147-5857