Los Cabos Residential Real Estate Market Report

2024 Q4 Market Report

January 8, 2025

REPORT COMMENTARY

In the last quarter of 2024, we experienced a surge in sales, particularly in December. Q4 saw sales of $353m USD under contract, up 60% from Q3. Unit volume was 271 sold, up 26% from Q3. Thanks to the late surge, 2024 Q4 was the 2^nd highest Q4 in history only being eclipsed by 2021 Q4.

Average and Median house prices jumped in Q4 driven by increased volume above $1m USD and particularly above $10m changing the sales mix. For the first time since Q4 2022 multiple sales over $10m occurred with the highest sold at $18.7m. A total of 7 sales for a total of $97.7m occurred above the $10m mark.

The $2m to $5m price point bounced back from Q3 with 26 sales and a sales dollar volume of $79m. Leading in terms of unit volume, the $200k to $500k points saw a total of 119 houses and condos sold, amounting to $43.1m.

The average Days on Market (DOM) for houses and condos declined sharply. Houses fell from 155 days to 114 days while Condos fell from 185 days to 117 days indicating stronger demand and better pricing.

Inventory in Q4 increased to levels never previously seen with 1,935 houses and condos for sale. Over 60% of the current inventory consists of completed houses and condos, totaling 1,235, surpassing pre-construction properties at 700 houses and condos. This represents increased selection for buyers at a time when demand remains strong. Further increases in inventory will pressure serious sellers to get prices right.

Price reductions remained a common theme in 2024 and continued to be a regular occurrence in Q4. The numbers for 2024 finished as anticipated with 1181 price reductions, well surpassing the total of 547 for all of 2023.

LOS CABOS MARKET DIRECTION

Buyer interest in the market was reinvigorated in Q4. Combined with rising inventory the market is teetering towards a “buyer’s” market. This won’t be the case for every price point or subdivision as inventory varies and buyer preferences evolve. Rarer properties like Oceanfront will still command a higher price but how much higher will be the question.

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.