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.

Posted on February 19, 2018 at 2:09 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Closing Costs in Mexico, Club Campestre San Jose del Cabo, Condos in Cabo, Contemporary Homes, Houses in Cabo, Los Cabos Real Estate, Market Report, Mexico Real Eatate, Real Estate in Cabo, Seller's Fee in Mexico, Windermere Los Cabos | Tagged , , , , , , , , , ,

Tiger Woods Course Design Debut Drives Mexico Home Prices

This morning I just got accross this article from Bloomberg News. This article give you a great overview what has been going on in real estate here in Los Cabos and also gives you an inside what options are available for you if you are interested in purchasing a home here in Cabo. Getting a home equity loan might me one of the options. Some developers are offering in-house financing to American and Canadian buyers but at a slight higher rate then an equity loan back home. If you have any questions with regards to inventory available, don't hesitate to contact me. 

Martin Posch, Owner & Managing Partner, Windermere Los Cabos

(855) 877-2226 or martinposch@windermere.com

 

By Jonathan Levin and Brendan Case May 23, 2014

Tiger Woods is turning the Mexican desert in Los Cabos into grass fairways. Americans with home-equity loans are seeing green there too.

Woods, the winner of 14 majors, will open El Cardonal this year, making his debut as a designer of a completed course. The 71-par layout near the southern tip of the Baja Peninsula is part of the coastal Diamante Cabo San Lucas resort, where villas come with palapa bars approachable by infinity pools.

The golf courses and beaches of Los Cabos are luring Americans who are able to get home-equity loans to buy in Mexico as U.S. housing prices rise. Buyers, mostly from California, are purchasing condominiums, villas and estates ranging from $200,000 to more than $7 million following a plunge in prices, according to Deloitte & Touche LLP.

“What I really wanted to do was take advantage of the market,” said Joy Gipson of Lake County, California, who this year financed a 1,600 square-foot Los Cabos condo with a home-equity loan. “Real estate is starting to revive and I didn’t want to get priced out again.”

Visitors to Los Cabos have the rugged Pacific Ocean to the west and the calmer waves of the Sea of Cortez to the east. The coastal region has long drawn scuba divers. It has such a large diversity of fish, sharks and ocean habitats that the late deep-sea explorer Jacques Cousteau called it the “world’s largest aquarium.”

In the 20-mile-long coastal corridor connecting the towns of Cabo San Lucas and San Jose del Cabo, multimillion dollar homes sit aside $500-a-night hotels. With art galleries and nightclubs built around a 380- slip marina for 200-foot yachts, Cabo San Lucas is the contemporary companion to the colonial architecture of San Jose del Cabo.

Home Equity

The 31 percent gain in U.S. home prices since January 2012 has given property owners more equity. That’s made it easier for them to get home equity lines of credit, or Helocs, for as much as $500,000.

To qualify, borrowers usually need 20 percent equity in a property and a credit score of at least 720 on a scale from 300 to 850, said Keith Gumbinger, vice president of HSH.com, a mortgage data firm in Riverdale, New Jersey.

American buyers in Mexico are benefiting from the decline in the costs of credit lines, which have adjustable rates tied to the prime rate. The average rate for a $100,000 Heloc was 4.55 percent on May 21, down from 5.8 percent a year earlier, according to Bankrate.com. The average rate for a 30-year fixed mortgage was 4.17 percent.

Mexican Market

“I leveraged the equity in my house and spent my savings,” the homebuyer Gipson said. “I did a lot of research into financing. You can finance homes in Mexico but it’s very expensive.”

Wells Fargo & Co. (WFC:US), the largest U.S. lender, is offering a $100,000 Heloc at 5.13 percent in Los Angeles and San Diego, with a minimum credit score of 700, according to Bankrate data.

U.S. banks held $596.2 billion of Helocs in the fourth quarter, according to the Federal Reserve. That’s down from the $894.7 billion peak in late 2008, when banks provided credit lines to owners with no home equity, contributing to a wave of defaults.

While resort areas such as Puerto Vallarta and Los Cabos are getting a boost from international buyers, the home market in Mexico has struggled amid weak economic growth and shifts in government policy.

Prices Plunge

President Enrique Pena Nieto’s government curbed subsidies for commuter-town developments, which halted home-construction projects and spurred a housing downturn. Mexico home prices rose 5 percent in the first quarter of this year from a year earlier, according to data from Sociedad Hipotecaria Federal, a government housing bank. That’s the best three month gain in at least seven quarters.

Los Cabos real estate lost 40 percent of its value in the global financial crisis, according to Bruce Greenberg, director of real estate valuation services for Deloitte in Mexico City. Prices have risen about 5 percent a year since the recovery started in 2012, said Greenberg, who has valued more than 1,000 Los Cabos homes.

“Mexico shadows what happened in the United States,” Greenberg said. “The recession of 2007 and 2008 rolled in and that’s when the bottom fell out.”

El Cardonal

Real estate entrepreneur Kenneth Jowdy, 49, bought the property on which Diamante Cabo San Lucas sits in 2006. The resort comprises 1,500 acres of coastline and sand dunes and includes a golf course designed by PGA Champion Davis Love III, a lagoon for water sports and an equestrian center. Love’s Dunes course, which opened in 2009, was ranked no. 1 in Mexico by Golf Digest in 2012.

Jowdy started selling home lots in 2010, and since then, the average sale price has increased about 10 percent annually, he said. Oceanfront lots from half to three-quarters of an acre sell for around $2 million, he said.

At El Cardonal, which features views of the Pacific Ocean, workers were laying grass on the fairways in early May, Woods said on his blog. El Cardonal’s design, characterized by holes that require strategically placed shots with several playing options, was influenced by the old-style courses of Southern California that Woods played growing up, he said.

“There are going to be different ways to play every hole,” Woods said on the course’s website. “Angles of approach are going to be very important and will dictate the type of shots you should consider. I love this kind of golf.”

 

Golf Villas

Golf villas at Diamante have four bedrooms, five bathrooms and a large living room that extends onto the terrace. There’s even a garage for a golf cart. The properties are built around an open courtyard in the style of centuries-old Mexican haciendas.

“There are other projects that were basically mothballed after 2008,” Jowdy said from Cabo San Lucas. “Now you drive by them and you see equipment out there moving dirt and construction started.”

U.S. buyers avoid getting financing in Mexico because it’s too costly, said Julie Kershner, a broker at Sotheby’s International Realty in Los Cabos. Americans buying in Mexico should expect to pay 14 percent to 16 percent for mortgages.

While mortgages are set to 30-year amortisation schedules, they often must be paid in full within eight years, said Ryland Apsey, a mortgage broker with Mexico Capital Mortgage in San Jose del Cabo. He said buyers frequently must make a 35 percent down payment.

San Diego South

International buyers who obtain residency in Mexico typically get a 10 percent fixed-rate mortgage for as long as 20 years, according to Apsey.

Gipson, 57, a marketer for the public transit program in Santa Rosa, California, bought her two-bedroom, two-bathroom condo in Los Cabos as a place to possibly retire. The $193,000 home is a six-minute walk to the beach.

Gipson said the addition of more elite golf courses in Los Cabos will make it even more appealing to Americans.

“It’s going to turn into San Diego South,” she said.

To contact the reporters on this story: Jonathan Levin in Sao Paulo at jlevin20@bloomberg.net; Brendan Case in Mexico City at bcase4@bloomberg.net

To contact the editors responsible for this story: Vincent Bielski at vbielski@bloomberg.net; Rob Urban at robprag@bloomberg.net Alan Mirabella

©2014 Bloomberg L.P. All Rights Reserved. Made in NYC

 
Posted on May 23, 2014 at 12:14 pm
Martin Posch | Category: Baja Real Estate, Cabo Real Estate, Cabo San Lucas, Cabo San Lucas Realty, Los Cabos Real Estate, Martin Posch, Mexico Real Eatate, Windermere Los Cabos | Tagged , , , , , , , , ,

Seller Financing

Economic changes worldwide have resulted in a real estate marketplace in Mexico where no mortgage product exists for US and Canadian citizens. As a result, many sellers are reluctantly considering acting as “The Bank” and offering private financing, but are doing so without carefully analyzing the risk of the buyer or without professional mortgage or legal advice. 


Underwrite Mexico’s philosophy is to promote more seller financing transactions by providing a safer lending environment for sellers. in the case of any bank giving any mortgage, 4 key factors need to be considered.


1) Real Estate market needs to be stable, not in a period of decline


2) A significant down payment needs to be given


3) The deed needs to be structured correctly


4) The borrower needs to be carefully analyzed


The first launch of Underwrite Mexico is the “Know your Borrower” program. It is a detailed review of the buyer/borrower to determine creditworthiness and is designed to take the liability for this process out of the hands of the agent and have it handled by a professional 3rd party making sellers feel significantly more comfortable with providing a private mortgage by having specific lending guidelines they agree to and a provider that is an expert in Mexico underwriting protecting their interests. Buyer pays/ seller benefits.


Listing agents now have a professional consultation service to refer to their sellers to facilitate more sellers being open to seller financing and buying agents now have a way to strengthen ANY offer that includes a seller financing request as buyers through UM’s approval process “open their books” to the sellers in the form of a legitimate loan application. Let us act as the go between and help you sell more real estate while protecting both buyer and sellers interests.


Our following launch will be a payment service to assist with automatic payments between buyers and sellers allowing easy review of balances and payments as well as direct debit and credit features. This will assist with tracking of late payments and levying of penalties. 


Also coming soon will be the launch of a private mortgage insurance product that will insure the payments to the seller by the borrower in the case of job loss, disability or death.


Please view our site – www.underwritemexico.com.


For more information please contact me at: martinposch@windermere.com or (855) 877-2226

Posted on July 19, 2013 at 1:16 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 , , , , , , ,