Los Cabos Residential Real Estate Market Report 2023 Q3
2023 Q3 Market Report
October 12, 2023
Its fall and the Cabo heat is starting to subside. The market slowed as it often does in the summer with Q3 coming in with a sales dollar volume of $257.7m. Sales volumes are down by 16%, with 349 houses and condos sold. The $2m to $5m price point again remains the market hot spot with $69m and 23 houses and condos sold. The $300k to $400k price point was the leader in terms of unit volume with 69 houses and condos sold for a total of $24m.
In Q3, inventory continued to improve, both physical inventory and pre-construction listings with total inventory at its highest level in 2 years. Pre-construction once again dominates inventory, with over half of all MLS listings being pre-construction.
LOS CABOS MARKET DIRECTION
With both the US and Canadian Real Estate markets on the rebound and interest rates holding, we see demand remaining strong in Los Cabos. The “Super Peso” effect, the strongest Peso in 7 years, appears to be subsiding with the Peso moving back to the 18 range. Hopefully this does not dampen Mexican investors interest in Los Cabos.
NEW IN THIS REPORT
Commodity Indices – We have charted on P17 the values by year for what we are considering “Commodities or Products” where their change in value can be tracked over time. Properties in Los Cabos are unique with values varying based on ocean views, location and appointments its a challenge to find a true commodity.
We took a shot at three:
- Copala 2 Bedroom Condos with Ocean Views between the 3rd and 5th floors – representing a fairly homogeneous product. We excluded 6th floor penthouses units due their rooftop space and 1st and 2nd floor units based on view inconsistency.
- Copala 3 Bedroom Condos with Ocean Views between the 3rd and 5th floors – as above. We know there are two different 3 BR models but felt it better to include all 3BR units.
- Fundadores 4 Bedroom Houses with Ocean Views and Pools – this is a tougher one as homes in Fundadores are largely custom, but 4 BR homes represent most of the sales volume there.
These charts debuted in our 2023 Q2 Supplement and will be included in the quarterly reports going forward.
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.