We had a strong last quarter in 2013. I believe we can say that we have seen the bottom of the market and we will be seeing a increase in total sales volume. I don’t believe that we will see an increase in prices yet. There are certain areas that lack inventory and we might see prices tightening up but in general there is still lots of inventory that will keep pressure on sellers to a certain flexibility on prices.
The total sales volume from January 1 to December 31, 2013 on residential properties (condos & houses) is up by almost $30,000,000 US Dollars to $183,206,524 US Dollars. This is an increase of 19% compared to 2012. The average sales price is up 13% to $514,600 US Dollars.
The condo market is lacking the 2012 sales but has caught up at with the number of sales and is closing in on the total volume as well. The total sales volume is down a 11% to $41,930,636 US Dollars and the average sales price is down by 10% to $279,535 US Dollars.
Sales for single-family homes are up by 32% to $141,275,888 US Dollars. The average sales price is up by 19% to $685,805 US Dollars.This should be a sign that we have hit rock bottom here in Los Cabos and sales should increase steadily in the first quarter of 2014.
The average time to sell a residential property is still a very high 442 days. Almost a 70% of the total sales volume was generated on properties up to $500,000 US Dollars. Only a 15% of the sales volume was generated on properties above $1,000,000 US Dollars. This is an increase of approximately 5% since 2012. Finally the higher end market is starting to recover as well.
The total number of sold transactions in 2013 increase a 6% to 356 units.
I believe that we will see an increase in activity and sales in 2014. But as I mentioned above, it will be a slow recovery.