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Real Estate in Cabo Residential Market Report – July 2018
Real estate in Cabo has been extremely quiet this summer. Activities (showings) have dropped a lot and it has been very quiet. The numbers of pending sales and close sales confirm that lack of activity. So let’s have a look how the market has performed since January 1st, 2018,
The Real Estate in Cabo Market Report includes only sales of single family homes and condos from Cabo San Lucas to San Jose del Cabo. It doesn’t include any sales on the Pacific side to Todos Santos nor the East Cape to Los Barriles.
Overall we have seen a decline in pending and closed sales. Properties under contract have declined a 10% to 298 accepted offers. Closed sales have declined a 12% to 236 closed condos and houses. And the total sales volume has gone down an 18% to $130,557,000 USD. The average sales price went down to $553,000 US Dollars which is a 7% decline. However the median sales price has actually increase by 3% to $282,000 US Dollars.
Let’s have a look how the numbers have developed for Condos in Cabo.
Condos under contract have gone down only a 1% to 176 units. Number of condos sold so far this year is down by 13% or 130 units. The total sales volume has decreased only a 2% to $62,964,000 USD. But the average sales price is up by 12% to $484,000 USD and the median sales price has increased to $268,000 USD which is a 10% raise. The percentage of list to sold price is steady at 92%.
The numbers for Houses in Cabo are the following:
Houses under contract have decreased a 20% to only 122 units. Closed and sold houses went down to 106 units from 117 a year ago. This represents a decline of 9%. The total sales volume decreased by over $26.4 million US Dollars to $67,593,000 USD. This is a reduction of 28%. Both average sales price ($553,000 USD) and median price ($328,000 USD) decreased a 20% and 6% respectively. The percentage of list to sold ratio decreased to 90% from 92% a year earlier.
Total Active Listings
New Listings
Listings under contract
listing sold
Total Sold Volume
average sales price
Don’t hesitate con contact me if you have any questions or doubts.
martinposch@windermere.com
(877) 855-2226 US toll free
+521 (624) 147-5857 Mexican Cell Phone
Real Estate in Cabo Residential Market Report
The first six months are over and it is time to look at the real estate in Cabo. This report only includes single family homes & condos from Cabo San Lucas to San Jose del Cabo. I will compare this years numbers to last year’s for the same period of time.
Real Estate in Cabo has started very slow this year but little by little the numbers have been increasing over the last months and weeks. So, let’s have a look at the numbers:
Condominios (For Condo Search click here)
Total active listings for condos increased by 63% to 639 active listings. New listings also increase by 121% to 317 listings. Units under contract decreased by 5% to 143 contracts. Numbers of units sold decreased also 5% to 110 units. Total sales volume increased by 24% to %57,002,000 US dollars with the average and median sales price up to 32% tp $518,000 US dollars and 15% to $259,500 US dollars respectively. The list to sold ratio is at 92%
Single Family Homes (For Single Family Home Search click here)
Total active listings for single family homes increased by 69% to 543 active listings. New listings as well increased by103% to 256 listings. Homes under contract decreased by17% to 111 accepted offers. Number of units sold decreased by 4% to 96 single family homes and the total sales volume decreased by 30% to $55,473,000 US dollars. Both the average sales price and median sales price decreased by 27% to $578,000 US dollars and median sales price was down only $1,000 US dollars to $315,000 US dollars. The list to sold ratio decreased to 90% from 91% a year earlier.
That brings us to following numbers overall. Total active listings 1,182, which is an increase of 66% with new listings of 573 units that represents an increase of 113%. Total units under contract for the first six months has decreased by 11% to 254 units. Closed units fell by 6% to 206 units and the total sales volume felt by 11% to $112.476,000 US dollars. The average sales price felt to $546,000 US dollars which is a 5% decrease but the median sales price increase by 3% to $275,000 US dollars.
If you would like to receive a report for a specific neighborhood please feel free to contact me at:
martinposch@windermere.com
US toll free (855) 877-2226
Mobile (624) 147-5857
Residential Real Estate Market Report
This year our residential real estate market has started slower then anticipated. Here are the numbers for condos and single family homes from January 1 until March 31, 2018. Here is the residential real estate market report for the first 90 days.
Hacienda Beach Resort and Residences
The numbers of closed sales are down a 14% to 84 closed transaction so far this year and the total sales volume is down by 23% to $41,914,000 US Dollars. That represents a decline of 23% for the first 90 days of the year.
Pending transactions are also down a 13% to 125 accepted offers so far this year. That will also reflect in the future with a lower number of closed transactions.
Now let’s see how the numbers look like for the condo and single family home market:
From the beginning of 2018 to the end of March, 2018 the total number of closed transactions for condos were down by 37% to 34 units. The total sales volume was down by 18% to $18,666,000 US Dollars. The average sales price was surprisingly up from $378,000 to $490,000 US Dollars. That is an increase of 29%. The median sales price for condos is also up by 24% to $230,000 US Dollars.
The single family market did a bit better then the condo market. The total number of closed transactions is up by 13%, while the total sales volume is down to $25,249,000 USD. That represents a decrease of 25% compared to the same period last year. The average sales price is also down a staggering 34% to $505,000 USD.
Total numbers of closed sales for properties above $1,000,000 US Dollars were down 68% to 6 closed escrows. The total sales volume was down by 51% to $18,015,000 US Dollars. The average sales price was up 55% to $3,003,000 US Dollars. Obviously with such a low number of closed sales the average sales price varies a lot. But even the median sales price for million plus condos and homes is up by 13% to $2,368,000 USD.
The market for properties below one Million US Dollars is much better then the million plus market. Although the total number of sales are down but not as much as the million plus market. The total numbers under contract went down by 7% to 109 accepted offers. Total units sold were down by 6% to 74 units and the total sales volume was up by 23% to $21,880,000 USD. The average sales price for condos and homes was up by 31% to $296,000 USD.
If you would like to receive an update on a specific residential real estate market report for a neighborhood, please let me know and I’m more then glad to provide you with the numbers.
Residential Real Estate Market Report
Here is the Los Cabos residential real estate market report (only condos and single family homes) from September 1, 2017 to February 28, 2018.
The total numbers of sales for all residential properties in all price ranges were down by a 2% to 181 transactions.
The total sales volume was up by a 2% to $131,594,000 US Dollars.
Total numbers of properties under contract is down by 7% to 205 contracts. Due to a higher sales volume the average sales price was up 4% to $727,000 US Dollars.
Now let’s see how the numbers look like for the condo and single family home market:
Condos
From September 1, 2017 to end of February, 2018 the total number of closed transactions for condos were down by 14% to 94 units. While the total number of sales were down the total sales volume was up by 7% to $51,680,000 US Dollars. Due to the higher sales volume the average sales price was up from $438,000 to $550,000 US Dollars.
Houses
Closed transactions for single family homes for the same period were up by a 16% to 87 units. The total sales volume was down by 1% to $79,914,000 US Dollars. Because of the lower volume the average sales price was down by 14% to $919,000 US Dollars.
One Million plus Market
Total numbers of closed sales for properties above $1,000,000 US Dollars were down 13% to 33 closed escrows. As a result the total sales volume was down by 6% to $85,235,000 US Dollars. The average sales price was up 9% to $2,583,000 US Dollars.
Below One Million Market
The market for properties below one Million US Dollars recovered and showed positive numbers. Therefore the numbers of sales and the total sales volume was up as well. The total numbers under contract went down by 1% to 182 accepted offers.Total units sold were up by 1% to 148 units and the total sales volume was up by 20% to $46,359,000 USD. The average sales price for condos and homes was up by 19% to $313,000 USD.
As a result of the negative news in 2017 I do anticipate a challenging year for real estate in 2018.
If you would like to receive a Residential Real Estate Market Report on a specific neighborhood,please let me know and I’m more then glad to provide you with the numbers.
Los Cabos Residential Real Estate Market Report
Here are the numbers for the residential market (only condos and single family homes) from January 1 to December 31, 2017
Puerta del Sol, Cabo del Sol
The total numbers of sales for all residential properties in all price ranges were up by a 16% to 443 transactions.
The total sales volume was up by a 12% to $293,049,000 USDollars.
Total numbers of properties under contract was up by 20% to 489contracts. The average sales price was down a 4% to $662,000 US Dollars.
Now let’s see how the numbers look like for the condo and single family home market:
From January 1 to end of December, 2017 the total number of closed transactions for condos were up by 14% to 239 units. The total sales volume was up by 27% to $112,730,000 US Dollars. The average sales price was up from $424,000 to $472,000 US Dollars.
Closed transactions for single family homes for the same period were up by a 17% to 204 units. The total sales volume was up by 3% to $180,319,000 US Dollars. The average sales price was down by 11% to $884,000 USDollars.
Total numbers of closed sales for properties above $1,000,000 US Dollars were up 27% to 84 closed escrows. The total sales volume was up by 15%to $188,879,000 US Dollars. The average sales price was down 10% to $2,249,000US Dollars.
The market for properties below one Million US Dollars recovered and showed positive numbers compared to earlier in the year. Total number of sales and accepted offers were up and the total sales volume was upas well. The total numbers under contract went up by 22% to 409 accepted offers. Total units sold were up by 13% to 359 units and the total sales volume was up by 7% to $104,170,000 USD. The average sales price for condos and homes was down by 6% to $290,000 USD.
If you would like to receive an update on a specific neighborhood, please let me know and I’m more then glad to provide you with the numbers.
Los Cabos Residential Real Estate Market Report
First of all, here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) January 1, 2017 to November 30, 2017.
Auberge Private Residences, Cabo San Lucas, Mexico
(For more info on this condo click here
Most noteworthy is that the total numbers of sales for all residential properties in all price ranges are up by a 19% to 425 transactions.
The total sales volume is up by a 12% to $278,389,000 US Dollars.
Total numbers of properties under contract are up by 25% to 454 contracts and the average sales price is down 6% to $655,000 US Dollars.
Now let’s see how the numbers look like for the condo and single family home market:
Condos
First of all, from January 1, 2017 to November 30, 2017 the total number of closed transactions for condos is up by a 17% to 230 units. The total sales volume is up by 20% to $102,589,000 US Dollars. The average sales price is also up by 2% to $446,000 US Dollars.
Single Family Homes
Closed transactions for single family homes for the same period are up by a 21% to 195 units. The total sales volume is up by 7% to $175,801,000 US Dollars. The average sales price is down by 11% to $902,000 US Dollars.
Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 27% to 79 closed escrows. The total sales volume is up by 13% to $178,344,000 US Dollars. The average sales price is down by 11% to $2,258,000 US Dollars.
Finally, the market for properties below one Million US Dollars has turned around over summer and is up compared to the same period a year ago. The total numbers of sales, accepted offer and total sales volume are. The total numbers under contract went up by 28% to 379 accepted offers. Total units sold are up an 18% to 346 units and the total sales volume is up by 10% to $100,045,000. The average sales price is down by 7% to 289,000 US Dollars,
Are you interested in getting a Los Cabos Residential Real Estate Market Report for a specific area? Please feel free to contact me and I’ll be more then glad to provide you a specific report.
How much are Buyer’s Fee’s in Mexico
One of the biggest mistake I see from newer agents is that they don’t address Buyer’s Fee’s during their sales pitch. Buyer’s Fee’s are higher in Mexico, especially in the restricted areas such as the Baja Peninsula.
Buyer’s fee’s or closing cost can range from 3% to 10% of the purchase price for foreigners in Los Cabos.
- Here is a list of Buyer’s Fee’s:
| Fee Description | Assessed by/Paid to | Explanation of Cost/Purpose | |
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ISABI – Acquisition Tax |
Los Cabos Municipality |
2% of the Property Purchase |
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Tax Appraisal Permit Fee |
Los Cabos Municipality |
This fee is assessed on the purchase price and/or tax appraisal and records the tax Appraiser’s findings with municipal tax office. |
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Public Registry Fee |
Los Cabos Municipality |
This is the recordation fee for the Deed of Trust in the Public Registry and is based on your purchase price. |
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Certificate of No Tax Debt – Property tax debt – No Water Debt |
Los Cabos Municipality OOMSAPAS (Water Service) |
The certificates assure that the Seller has no debt recorded on the property. And that no liens have been filed for any reason against the property. This is an estimated flat fee as the cost as fluctuates based on the Peso value. The certificate of no liens is pulled twice in the closing process. |
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Notary Fee |
The Notary |
For the legal service associated with the transfer of the title. Including Trust Deed elaboration, trustee bank approval and communication, coordination of all municipal and federal permits, etc. The fee is based on the Purchase price of the property and has a cap limit for properties valued at more then $2mm USD. |
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Foreign Affair Permit and Registration (FAM or SRE) |
Foreign Affairs Ministry ℅ of the Trustee Bank |
This requisite permittee is actually two costs – the permit fee, as well as the registration of the foreign Purchaser(s) acquisition in Mexico, and authorization of purchase. This is a fixed fee |
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Trustee Bank Initiation Fee |
Trustee Bank |
This fee is assessed for the review and acceptance of the Purchaser’s Trust Deed. This is a fixed fee, generally the same cost as the annual trust maintenance fee (below) |
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Trust Bank Annual Fee |
Trustee Bank |
This fee is assessed for the ongoing service of acting as trustee of the Purchaser’s Trust and the associated filing requirements. This is a fixed fee, specified in the Trust Deed at execution and while the fee varies by bank it is generally between $333 – $666 USD annually. |
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Certified Translation Fee |
3rd Party Translator |
All documents associated with the Purchaser’s Acquisition but duly translated by a certified translator for acceptance by the Trustee Bank, Notary and Foreign Affairs Ministry. This includes identification, proof of address, corporate or entity documents, etc. Cost is on a per page basis. The cost of the certified translation of the Trust Deed is included, however, in the Transaction fee. |
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Transaction Fee |
Closing Department |
To offset the cost of courier services, foreign notary services for document authentication, etc. This is a flat fee. |
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Escrow Fee |
Escrow Agent |
The cost of the escrow and supervision. This is a fixed fee. |
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Optional – Title Insurance Fee |
Title Insurance Company |
Depending on the Company. |
* This table of fee’s was provided by Lic. Javier Mazoy of Lex Advisors.
Closings normally take between 60 and 90 days. This is from the time all necessary documents have been provided by both parties. If you have to deal with HSBC or Scotiabank closing can take up to 180 days.
Part of the Buyer’s Fee’s or closing costs have to be paid up front. Normally I can be between $3,000 – $5,000 USD. Some company will ask for as much as 50% to the total Buyer’s Fee’s in advance. This can be wired together with your increased Earnest Money into the Escrow Account.
Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.
Martin Posch
(624) 147-5857 Mobile
From the US please dial: +521 (624) 147-5857
How much are Seller’s Fee’s in Mexico
Seller’s Fee’s in Mexico
Clients are always asking me how much are the Seller’s Fee’s in Mexico when they sell their property. There are only two fees when you sell your vacation home or condo. You have to pay capital gains tax, if any, and the real estate commission. The rest of the fees are paid by the purchaser.
Photo from Hacienda Beach Resort & Residencies, Cabo San Lucas, Mexico
Escrow fees can be negotiated to be split between both parties. Sellers are responsible to have Mexican property taxes, home owners dues & special assessments paid up to the day of closing, Utilities, such as electricity and water can be prorated. Unfortunately your yearly trust fee can not the prorated. With that said, if you just paid your trust fees for an entire year and you sell your property one month later the trustee bank will not give you any money back.
When you sell your property in Mexico, capital gains tax will be calculated by the notary public. This tax is calculated in Mexican Pesos and not US Dollars. That means if you purchased our property for $500,000 USD at and exchange rate of 10 Pesos per one US Dollar your cost bases is $5,000,000 Pesos. If you sell your property today for the same US Dollar amount but the exchange rate is at 17.5 Pesos per one US Dollar you will get $8,750,000 Pesos. This results in a gain of $3,750,000 Pesos. The Mexican IRS will tax you a 35% of this gain.
The real estate commission is a deduction. And you will receive an inflationary credit for each year you have owned your property. Original invoices (facturas) for improvements can also be submitted to the notary public for consideration. There are also tax strategies that can be applied at the time of closing in order to reduce your gain.
Please remember there is no double taxation between Mexico, USA and Canada. So it is important and I highly recommend you to talk to your accountant back home with regards to your income taxes. You should receive a tax credit for capital gains tax you paid in Mexico.
Sellers are also asking me a lot about the IVA tax (Value added Tax) that is added to the real estate commission. Almost all services are subject to a 16% IVA tax in Mexico. And the real estate commission you pay is considered a service. This fee is 100% deductible from your gain.
Closings have become more complicated lately. Normally an average closing takes about 60 to 90 days from the day all necessary documents have been provided to the closing agent. If your trust is with HSBC or Scotiabank closings can take six months or more. So don’t spend the money until your deal closes.
Please feel free to contact me with any questions or doubts you might have. I’ll be more then happy to assist you selling your property.
Martin Posch
(624) 147-5857 Mobile
From the US please dial: +521 (624) 147-5857
Los Cabos Residential Real Estate Market Report
First of all the number for the Los Cabos Residential Real Estate Market Report for the first eight months are still stronger on accepted offers, closed deal and total sales volume. But the average sales price has been declining over the last few months.
Casa Francisco, Santa Carmela, MLS 17-1767, Los Cabos
(For more details click here)
Here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) from January 1 to August 31, 2017.
The total numbers of sales for all residential properties in all price ranges are up by a 17% to 304 transactions.
The total sales volume is up by a 13% to $187,589,000 US Dollars.
Total numbers of properties under contract are up by 35% to 387 contracts. The average sales price is down a 3% to $617,000 US Dollars.
Now let’s see how the numbers look like for the condo and single family home market:
Condos
From January 1, 2017 to August, 2017 the total number of closed transactions for condos is up by a 17% to 164 units. The total sales volume is up by 28% to $71,819,000 US Dollars. The average sales price is up 8% to $438,000 US Dollars. Finally the List Price to Sold Ratio in creased by 3 percentage points to 92%.
Single Family Homes
Closed transactions for single family homes for the same period are up by a 15% to 140 units. The total sales volume is up by 5% to $115,770,000 US Dollars. The average sales price is down by 8% to $827,000 US Dollars. Furthermore the List Price to Sold Ratio went up from 88% to 92%.
One Million plus Market
Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 27% to 56 closed escrows. The total sales volume is up by 12% to $118,434,000 US Dollars. The average sales price is down 12% to $2,115,000 US Dollars.
Below Million Market
Properties below one Million US Dollars is starting to show conflicting numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 39% to 320 accepted offers. Total units sold is up a 12% to 248 units and the total sales volume is down by 1% to $69,155,000 US Dollars. The average sales price for condos and homes are down by 11% to $279,000 USD.
If you are interested in receiving a specific Residential Real Estate Market Report fell free to contact me.
Los Cabos Residential Real Estate Market Report
First of all, here are the numbers for the Los Cabos Residential Real Estate Market Report (only condos and single family homes) January 1, 2017 to July 31, 2017.
Most noteworthy is that the total numbers of sales for all residential properties in all price ranges are up by a 14% to 264 transactions.
The total sales volume is up by a 13% to $157,906,000 US Dollars.
Total numbers of properties under contract are up by 32% to 350 contracts and the average sales price is down 1% to $598,000 US Dollars.
Now let’s see how the numbers look like for the condo and single family home market:
Condos
First of all, from January 1, 2017 to July 31, 2017 the total number of closed transactions for condos is up by a 21% to 149 units. The total sales volume is up by 26% to $64,290,000 US Dollars. The average sales price is also up by 4% to $413,000 US Dollars.
Single Family Homes
Closed transactions for single family homes for the same period are up by a 5% to 115 units. The total sales volume is up by 5% to $93,616,000 US Dollars. The average sales price is also up by +/- 0% to $814,000 US Dollars.
Total numbers of closed sales for properties above $1,000,000 US Dollars is up a 44% to 46 closed escrows. The total sales volume is up by 28% to $97,619,000 US Dollars. The average sales price is down by 11% to $2,122,000 US Dollars.
Finally, the market for properties below one Million US Dollars is starting to show lower sales numbers compared to the same period a year ago. Total number of sales and accepted offer are still up but the total sales volume has started to decrease. The total numbers under contract went up by 34% to 288 accepted offers. Total units sold is up a 9% to 218 units and the total sales volume is down by 5% to $60,286,000. The average sales price is down by 13% to 277,000 US Dollars,
Are you interested in getting a Los Cabos Residential Real Estate Market Report for a specific area? Please feel free to contact me and I’ll be more then glad to provide you a specific report.
