Every January I create this report for my clients and post it on my blog. This year our MLS-BCS organization have asked me to share it here.
This year was something of a shocker to me; at least when I started examining the data. Actually, I had thought it was a pretty good year, all things considered. Granted the hotels were closed but there were sales so I was shocked to see the final tally being down over 2014. But first, let’s take care of the disclaimers. This data was collected from FLEXMLS, the system used by our Multiple Listing Society, on December 30, 2015. Due to agent input error it might not be absolutely accurate, but it’s as close as we can get. And although our system is state-wide I limited the data collection to Los Cabos: San Lucas, San Jose and the Corridor divided into two segments. And last, unless I specify otherwise I’m using the price that was accepted, not asking price but actual sales price.
So, how bad was it? Well, pretty bad. In terms of overall sales (lots, condos and houses in the areas listed above) sales volume in dollars was down 31% for the year: from $290,604,970 in 2014 to $203,367,969 in 2015. Prices seemed to be rising by year end, but must have been lower earlier as the number of sales was off only 28%, dropping from 450 in 2014 to 369 last year. As in 2014, last year the Cabo side of the corridor was the real estate rock star. Here’s the breakdown:
For as long as I can remember people have been telling me that San Jose is significantly more affordable than Cabo San Lucas. But if you look at last year’s data you will see that for single family homes and home sites San Jose is actually more expensive than Cabo, although they do continue to have a price advantage for condos. And the price jump for the San Jose Corridor versus the rest of the region is astonishing: we should call it the Querencia Effect. Here are the summaries by zone and type.
And so, that is 2015 in a nutshell. For more detailed information or data specific to your neighborhood please contact us personally, our MLS database is a wealth of information.
What can we look forward to in 2016? While no one can predict the future, I’m feeling very good about the coming year. By the end of 2015 prices were inching up in some categories and billions were being invested in new developments. One very prominent developer on the Cabo Corridor even raised prices across the board about 30%. Almost all hotel rooms are back online and consumer confidence in the US is high. Although the weak peso won’t help on the actual sales price of real estate here it does reduce closing costs significantly and will offer buyers a significant advantage on future capital gains tax. All in all, it looks like 2016 is going to be a good year. A very good year indeed.
Carol Billups is Broker/Owner of Cabo Realty Pros, a full service real estate agency in Cabo San Lucas. Their website is www.caborealtypros.com. She can also be reached at firstname.lastname@example.org or by phone at 044-624-147-7541 or (760) 481-7694 from the US or Canada.
©2016 Carol S. Billups Reprinted by permission.