2026 Q2 Market Report

July 7, 2026

REPORT COMMENTARY

Q2 of 2026 brought a notable shift in the market’s sales mix even as sales volumes eased. Dollar volume reached $456M USD, up roughly 44% over Q1 2026’s $316M, while unit volume declined 9% to 293 units. Q2 is notable as the 2^nd highest Q2 dollar volume since 2021.  This shift was driven largely by a surge in ultra-luxury activity: sales over $10M jumped from just 1 unit ($11.9M) in Q1 to 9 units totaling $160.9M in Q2, and sales above $1M overall accounted for 80% of dollar volume (84 units) versus 67% in Q1. House sales rose 7% to 133 units, while Condo sales fell 19% to 160 units. The average selling price for all residential properties climbed to $1,557,868 (+58.7% over Q1), with houses averaging $2,457,301 (+67.5%) and condos averaging $810,214 (+19.6%) – increases driven more by mix-shift toward larger transactions than by broad-based price appreciation, as median prices moved more modestly ($525,000 overall, +18.7%).

Days on Market showed a split: houses improved to 151 days average (from 197 in Q1), while condos ticked up slightly to 195 days (from 191). The Sale-to-List Price Ratio softened across the board, with houses at 87.8% (down from 89.5%) and condos at 92.1% (down from 93.2%), pointing to greater buyer negotiating leverage this quarter along with moderating seller expectations.

Inventory eased slightly from its Q1 peak, falling to 2,134 active houses and condos (from 2,320), with a total list value of $2.86B, down from $3.23B in Q1. Condos still dominate the inventory landscape at 1,289 units (60% of volume, $1.01B in value), while houses account for 845 units ($1.84B). With 15 Months of Inventory overall (14 for houses, 16 for condos) and a Sales-to-New-Listing Ratio of 42% overall (48% houses, 38% condos), the market remains oversupplied relative to demand, particularly on the condo side.

The Two-Bedroom Condo segment posted 92 sales this quarter against 226 new listings for a 41% SNLR, and carries 25 Months of Inventory against 658 units of standing inventory valued at $319.4M — still firmly in buyer’s market territory.  

Year-to-date 2026 price reduction activity totals 1,049 reductions on completed houses and condos, with 176 resulting in a sale, and the quarter’s largest reductions were concentrated in higher-end listings, including a $4.0M reduction (-13%) and a $2.2M reduction (-37%) — both signals of buyer leverage and sellers recalibrating expectations to move product.

LOS CABOS MARKET DIRECTION

Q2 2026 data confirms the market is dividing between a resilient, ultra-luxury tier and a softer, inventory-heavy middle and condo market. The record-setting $160.9M in over $10M sales demonstrates continued top-end demand, but the broader market — with 15 Months of Inventory and a balanced-to-soft 42% SNLR overall — remains tilted toward buyers, and declining Sale-to-List ratios suggest sellers are increasingly conceding on price to close deals.

The $2M to $5M Mid-Luxury Segment continues to show healthy absorption but with longer marketing times: houses recorded 42 sales against 131 active listings (a roughly 32% conversion), with an SNLR of 52% (balanced-to-seller territory) but 12 Months of Inventory, while condos in this segment posted a stronger 44% SNLR against 18 Months of Inventory and 23 sales. Both segments will need to remain flexible on pricing and timeline expectations.

The Two-Bedroom Condo Segment remains the most challenging, with 658 units of standing inventory (25 Months of Inventory) working against a 41% SNLR this quarter. As more pre-construction inventory continues to complete and enter the resale pool, competition among comparable units is likely to keep downward pressure on pricing and extend Days on Market in this segment through the remainder of 2026.

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