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Los Cabos Residential Real Estate Market Report

Los Cabos Residential Real Estate Market Report

2024 Q1 Market Report

April 9, 2024

REPORT COMMENTARY

One quarter down in 2024 and the Los Cabos Market has fired back from a slow 2023 Q4.  Q1 overall sales volume is up from Q4 by 86% with 397 houses and condos sold.  Q1 dollar volume is up 140% with $453m USD sold vs $189m USD sold in Q4.

Inventory has crested to its highest level since 2020 Q1 with 1,707 houses and condos for sale.  A significant portion of the current inventory, over half, is now completed houses and condos with 892, edging out pre-construction with 815 for the first time since recording began in 2020.  With inventory on the rise, we have enhanced the reporting of Inventory Months on Page 15 to differentiate Completed inventory and Pre-Construction inventory.

With the increase in sales activity, The $2m to $5m price point again remains the market hot spot with 28% of sales dollar volume at $128.7m with 41 houses and condos sold.  The $200k to $300k, $300k to $400k and $400k to $500k price points were the leaders again in terms of unit volume with 181 houses and condos sold each for a total of $63m.

Prices gained in Q1 with the average house price jumping by 49% and the median house price jumping by 16%.  Condo prices responded with a slight decline with a -2.6% change average condo price and -16% in median condo price.  Average Days on Market for both houses and condos is on the rise with average DOM at 151 and 156 respectively.  To evaluate Days on Market better we have added Median Days on Market to the report on Page 16.  This includes history by year starting in 2015.

LOS CABOS MARKET DIRECTION

Buyer interest in the market rebounded in Q1 despite rising inventory and increasing Days on Market.  The market appears to be stabilizing.  It’s not a buyer’s market and it’s not a seller’s market either.   With interest rates declining in the US and Canadian Real Estate markets, both buyers and sellers are getting back in the real estate markets.   In Q1, we saw demand return in Los Cabos.

NEW IN THIS REPORT

Median Days on Market – With inventory rebounding and average DOM on the rise, we have added reporting of Median DOM.  Median Days on Market provide additional insight into market activity. The median is the middle of the DOM dataset for a given year as opposed to the average.  The trend in Medium DOM is an indication of market activity.  Downward trends in DOM indicates a tightening of the market to seller’s advantage.  Upward trends in DOM indicates a loosening of the market to the benefit of buyers.  Go to Page 16 to see the results.

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.

Los Cabos Residential Real Estate - Historical Reports

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