It has been another interesting year here in Los Cabos. 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.
Let's look at some numbers throughout the first 9 months of this year and how it compares to the same time a year ago:
Although we have seen more numbers of sales, the total sales volume is Dollars is still down. We sold and closed 383 transactions this year, which represents an increase of 16.1%. If we look at the total sales volume it is down to $146,527,374 Dollars or a 16.91%. In 2011, 42 properties closed above $1,000,000 US Dollars. This year, throughout the first nine months only 32 million Dollar properties were sold and closed. This is a decrease of 23.8%. Median sales price is down 15.62% to $216,000 US Dollars in 2012 and the average listing price decreased a 7.66% to $746,570 US Dollar. The average sales price is down to $382,578 US Dollar or a 28.41%
As you can see prices are still under pressure and I believe that this will continue in 2013. There is just too much inventory in the market and that will not allow prices to recover. I think that in 2014 we will prices stabilizing.
Major investments are coming back to Los Cabos. There will be a second golf course built in Diamante (Tiger Woods Design), 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. Chileno Bay and its neighbor the Montage have been reactivated. A 196-room Park Hyatt Los Cabos will be located within a master planned golf resort community (Cabo del Sol or Puerto Los Cabos?) is expected to open in 2015. A Lowe 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 100's of million Dollars being invested right now here in Cabo. That will give us all a more optimistic outlook for the near future.
Martin Posch is co-owner and Managing Broker of Windermere Los Cabos and has over 11 years experience in the real estate market in Los Cabos. Martin Posch has served on the local MLS boards for numerous years. Please contact Martin Posch at: email@example.com or on his cellular phone +521 (624) 147-5857, www.MartinPosch.withWRE.com