There’s no doubt that over the last 7 years, the Los Cabos area has been thrown some curve-balls that greatly affected our real estate market. A recession followed by a Hurricane can sure do some damage. Yet, as Cabo historically always seems to do, our community has bounced back stronger than ever and is now on a clear road to recovery post-hurricane Odile. Here in my most recent market update, the numbers prove just this.
As a Realtor, it is my duty to my clients and staff to pull data from our MLS, analyze, and then properly advise on market trends and conditions. For most of our listings and buyers, we use a comparative market approach which depends heavily on closed sales in a given area or neighborhood to accurately value a subject property. So to keep it simple: For this approach to work, we must have closed sales. In years past, this had been a challenge in some cases. However, 2016 is writing a different story.
Below you will see the market data from January 1st – June 17th 2016 vs the same period from 2015 for homes and condos from San Jose del Cabo to Cabo San Lucas. This data is pulled from our FLEX MLS system. I continue to be impressed with 2016 as our numbers show us that our market is improving. With more closed sales in 2016 (nearly doubled), this gives us more data to work on when pricing a property and creating a stable market where values are becoming more clear across the board.
For Sellers, we now have more data to work off of and pricing your home to get it sold in the right amount of time at the right price will be an easier task. As the market improves, it also means that the List Price vs Sales Price variance will get smaller. In other words, in coming months and years, you won’t need to give as much of a discount off of your listing price during negotiations.
We all recognize and understand what a beautiful part of the world Baja and Cabo is. When you combine the weather, the people, and landscapes and a healthy market, there’s nothing but excitement for the future of Cabo!
Blake Harrington reviews the current upturn in the Cabo Real Estate market