2024 Q3 Market Report
October 5, 2024
REPORT COMMENTARY
In the third quarter of 2024, we experienced the Cabo summer lull where sales typically trail off.Β This yearβs Q3 saw sales of $233m USD under contract, down 45% from Q2.Β Unit volume was at 228 sold was down 34% from Q2.Β Despite the lull, the 2024 Q3 was the 3rd highest Q3 in history only being eclipsed by 2021 Q3 and 2022 Q3.
Average and Median house prices declined in Q3 driven by increased volume below $1m USD and declines in the above $1m USD price points changing the sales mix.
The $2m to $5m price point softened with a sales dollar volume of $70.6m, less than half of Q2βs $151m. Β Leading in terms of unit volume, the $200k to $500k points saw a total of 114 houses and condos sold, amounting to $39.7m.
The average Days on Market (DOM) for houses remained steady at 151 days, while for condos, it increased to an average of 187 days.
Inventory is still holding, with 1,617 houses and condos currently for sale. Β Once again over half of the current inventory consists of completed houses and condos, totaling 988, surpassing pre-construction properties at 629 units.
NEW IN THIS REPORT
As the market continues to adjust, price reductions are becoming increasingly common. On Page 16 in last quarters report, we began tracking these reductions, including those that led to sales for completed properties (not pre-construction). Β Since then we have noticed a number of very small price increases and decreases that were coloring the data.Β These small changes have been omitted to ensure that reporting of prices changes are for substantial changes.Β The numbers remain surprising, confirming that price reductions are significantly more frequent now. In fact, there were 852 price reductions through Q3 2024, surpassing the total of 547 for all of 2023.
LOS CABOS MARKET DIRECTION
Buyer interest in the market remained strong through Q3.Β In certain price points and subdivision prices are coming off their previous highs as price corrections begin.Β For the third consecutive quarter, it’s neither a buyer’s nor a seller’s market.