The State of Los Cabos Real Estate

It is exciting to read all the good news about the real estate market in the US. Unfortunately we don't feel that yet here in Los Cabos. Although amount of very good deals decreases very rapidly, sales have not really picked up yet. If we look at the residential market (homes, condos and town-houses) the market is even lacking the last years number.

In the first five month of 2012 we have sold and closed 144 transaction in our area. This year we are down a 16% to 121 transaction. The total sales volume is down from $73,713,491 US Dollars to $60,804,880 in 2013. This is a decrease of an 18%.

The biggest dropped we have seen on condo sales. The number of closed sales are down from 70 to 53. This is a 24 % decrease. The total sales volume is even worth with a decrease of a solid 44% to only $13,748,642 US Dollars.
 
At least the home sales are not looking as bad. The total units closed went down from 74 to 68 transaction. This is only a reduction of an 8%. The total sales volume decrease only a 3% from $48,789,927 to $47,056,238 US Dollars. It looks like the home market is starting to normalize.
 
We have seen a number of offer going through our office but to say the least they were very poor. Prices have adjusted between 40 to 50%. If offers come in with 30% below asking price no wonder that these offer won't fly. It seems like that the market is consolidating this year and buyers and sellers have to find each others again with this new reality. What I mean with the new realty is, that most of todays seller are not desperate anymore. The desperate once have already sold and moved on with their lives. The todays seller wants to sell but is not in a hurry to give their properties away. Buyers that are looking again in the second home and vacation home market here in Los Cabos have to be educated by the agents and brokers and talk to them about the new reality. It is amazing how much time is wasted with these ridiculous offers and I'm sure we all have more important things to do then waisting our time with these low ball offers.
 
If you would like to have more specific details about the Los Cabos real estate market don't hesitate to contact me.

 

Posted on June 3, 2013 at 1:55 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , ,

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