Los Cabos Residential Real Estate Market Report 2023 Q2
2023 Q2 Market Report
July 9, 2023
The midpoint of 2023 is upon us, and the market hasn’t slowed down much with Q2 coming in just under Q1 with sales volume of $435m. Sales volumes are down by 2%, with 474 houses and condos sold. The $2m to $5m price point remains the market hot spot with $132m and 44 houses and condos sold. Pre-construction remains sought after with just over 50% of the unit volume and 43% of the dollar volume in Q2 going to pre-construction sales.
In Q2, inventory overall improved, both physical inventory and pre-construction listings. Pre-construction again dominates inventory, with over half of all MLS listings being pre-construction. With respect to shortage of houses at particular price points, the under $500k price point has additional options with the start of Phase II of Las Misiones in El Tezal.
LOS CABOS MARKET DIRECTION
With both the US and Canada staving off recessions and real estate markets there on the rebound, we see demand remaining strong in Los Cabos particularly in the over $1m range. In addition, thanks to the “Super Peso”, the strongest Peso in 7 years, Mexican investors interest in Los Cabos is growing.
NEW IN THIS REPORT
Historical Average & Median Prices – We have charted on P2 the values by quarter of the Average and Median Prices for Houses and Condos but until now had yet to show the trend. On P12 we have included these values from 2015 forward including 2023 year to date. Average (or Mean) is the arithmetic average of sold prices. Median is the middle value in the distribution of prices where an equal number of units sold are below the middle and an equal number are above.
Sales Breakdown for 2023 Year to Date – We have broken down the market into different slices to shed light on the small proportion that completed houses and condos under $1m USD represents. Completed properties under $1m is only 18% of the market. This also highlights the proportion of completed properties over $1m USD, 39% and Pre-Construction, 43%.
Pre-Construction Sales to Date – With Pre-Construction shaping up as almost half the market activity on MLS, our new chart on P16 is showing where all the money is going.
ABOUT THIS REPORT
This report is produced using BCS MLS Data. It is limited to the Los Cabos Municipality apart from overlaps on the East Cape and Pacific Zones. Around Los Cabos, there is also significant activity that happens off MLS. These tend to be significant high-end developments that have their own way of marketing. These developments include The Cove Club, Chileno Bay, El Dorado, Montage, Maravilla, and Costa Palmas. As a result, this report is not a complete view of all real estate activity in Los Cabos. This report also does not report on land sales. Land sales also took off in the past two and a half years for both individual building lots and developer parcels.
All sales data in this report is based on the Under Contract Date. This is the date when the sale was consummated but not the date when the sale closed, and the title was transferred. Market reports published by other brokers and agents will typically use the Sold (or Closed) Date, which can be up to six months after the Under Contract Date. We feel using the Under Contract Date better represents market activity and timing. Consequently, prices and price volumes will not be entirely accurate until the closed date when the sold price is reported in MLS. In our current Market, with properties selling with very little off from the list, this difference is inconsequential.