Los Cabos Residential Real Estate Market Report 2021 Q3
November 18, 2021
House and Condo sales volumes have slowed from the blistering pace in the second quarter of 2021. Q3 is showing a decline in Sales and Dollar Volumes in the order of 30% over Q2. This is still miles ahead of any previous Q3 sales and the Q3 dollar volume is approximately 75% of a normal year’s sales.
Moderated Sales Volumes
Sales in Q3 2021 on a dollar volume basis declined slightly over Q2 to $329m USD. Unit volumes of houses and condos was down 26% over Q2. While sales slowed slightly in part thanks to Covid restrictions lifting in the US and people getting in some needed vacation time at home during the summer. That said, we continue to see buyers are coming en masse and sight-unseen sales are happening more than ever. Sales continue to be driven by buyer attitudes of 1) “LIFE IS TOO SHORT” and 2) WORK FROM HOME – if I have to work from home, home may as well be Cabo, and many buyers are simply looking to leave the US altogether. Investors contunie taking money out of the US based on looming increases is Capital Gains Taxes from President Biden.
Overall, the residential average and mean prices declined slightly at -13.8% and -9.1% changes over 2021 21. Individually average house prices increased 5.5% due to decline in house sales at lower price points due to lack of inventory. Individually average condo prices declined -21.4% due to a decline in high end condo sales and more lower priced and pre-construction inventory being sold.
Days on Market trend continues tightening even as the buying frenzy lets up (somewhat) and the Sold % of List Price trend continues to increase as the market tightens and quality inventory diminishes.
This report includes trend charts in the COVID Bubble section below. In this section we track the upward climb of unit and dollar sales volume since May 2020 when the lockdown ended in Los Cabos. We are also tracking the decline in Average Days on Market and the tightening of the Average Sold % of List Price.