Well, 2014 was nothing if not eventful for Los Cabos. While natural disasters and fairy tale endings have been discussed over and over the real estate market has been surprisingly quiet. What’s going on? Is the recession still hurting us? Quite the contrary.
The numbers show that real estate did very well last year. Before I start boring you with all the statistics let me make two good, old-fashioned disclaimers. Our MLS, FLEX MLS based in Fargo, North Dakota makes every effort to provide reliable information but remember what they used to say about “Garbage In - Garbage Out”? Here in Cabo we refer to it as “Agent Input Error”. And [AHEM] we’ve got a lot of it. So although we know the numbers aren’t completely accurate they’re the best we’ve got and in general are good enough to indicate trends.
The other disclaimer is to explain that the MLS is statewide. Because my area of interest is Los Cabos I eliminated any data outside the limits of Cabo San Lucas and San Jose proper and the corridor. And the categories I looked at excluded any commercial properties, limiting myself to single family homes, condominiums, and land (building lots). Lastly, when I mention price I’m talking about the actual sales price in U.S. dollars unless otherwise noted.
So on to look at what happened in my real estate market in 2014….
We had a good year. Some would say a very good year although a little something called Odile slowed us down considerably in the fourth quarter. Even with that glitch, we sold 19% more properties in 2014 than in 2013 in terms of dollar volume. For the three property types the total dollar volume last year was $290,604,970 U.S. In terms of the number of actual transactions we were up 18%, or 450 versus 379. With the increase in dollar volume so similar to the increase in transactions you would think prices have held to the 2013 level, and overall prices were up by 0.1%. But, that’s misleading as well see when we look at area. There are actually two zones to the corridor, creatively labeled San Jose Corridor and Cabo Corridor. The break is roughly at El Tule, the big arroyo midway between the towns. Prices went up 18% on the Cabo Corridor over 2013, and down just a bit in the other three zones.
Here is the data on Dollar Volume of Sales:
And here is the data on Median Sold Cost:
All the above numbers are aggregate, all types lumped together. But was there any difference between types? Are condos moving faster than single family? Is the market for building lots still dead? To find out, we broke up the categories, again by zone.
All in all, it was a very good year and 2015 is poised to be even better, at least once most of the hotels are in service. Hurricane Odile did not devastate our prices as some feared would happen. She did reduce the inventory, something that was already happening from natural causes. There were more sales than new listings for 10 months of 2014. Inventory increased only in February and December of 2014. All of which bodes well for 2015.
By Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over fourteen years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealestate.me. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
© 2015 Carol S. Billups