There are many considerations that need to be considered before making a decision for a home purchase. Real estate market trends and seasonal variation pose a great impact on the homes for sale in Los Cabos, Mexico.
As of the third quarter of 2024, there are about 1,617 houses and condos for sale in Los Cabos. More than half of these are finished homes, totaling 988, while 629 are still being built.
For more such data and information, keep reading this article as we will discuss some crucial real market trends of Los Cabos, Mexico, along with peak buying times and investment potential.
Los Cabos Mexico’s Real Estate Market Trends
The third quarter of 2024 was a significant downfall for the real estate market at Los Cabos, with 45% less total sale volume than the previous quarters, and the number of properties sold dropped by 34% to 228. Even with this decline, the third quarter of 2024 was still the third highest on record, only behind the years 2021 and 2022.
Average and median homes for sale in Los Cabos, Mexico, got lower because more homes are being sold for under $1 million USD. Houses ranging from $2 to $5 million USD have significantly fallen down to $70.6 million only, which is less than half of the previous quarter.
On the other hand, homes priced between $200,000 and $500,000 are selling well, with 114 houses and condos sold for a total of $39.7 million USD.
Things to Consider Before Making a Home Purchase
Foreigners are allowed to purchase property in Los Cabos, but in restricted zones (areas within 50 km of the coast and 100 km of international borders), ownership must be through a bank trust (fideicomiso).
Choose the right financing option. Cash is the best option for the deal as it requires no financing. Bank financing is also available, with many banks offering mortgages to foreigners. Also, private lenders can help you, but they can pose a high interest rate.
Hire a licensed real estate agent who is familiar with the area. They will help you by providing various property options based on your requirements and can also handle the legal terms and conditions required for the homes for sale in Los Cabos, Mexico.
Keep a clear idea of your budget, not limited to just buying a home but also post-purchasing expenses such as utilities and property taxes. Consider your long-term intentions (e.g., rental, vacation home) and any implications for foreign ownership regulations.
Seasonal Real Estate Market in Los Cabos, Mexico
Peak Buying Times
Spring and early summers (March to June) are often considered the prime buying season. Families prefer to move during the summer to avoid disrupting their children’s school year.
For this reason, there are an increased number of homes for sale in Los Cabos, Mexico. Rental prices typically increase during this period due to demand.
Late Summer to Fall (July to October) is a slight slowdown in market activities as most of the families are busy with their work schedule. However, there are some activities by those who are eager to buy and planning to close the deal before winter.
At this time, you can expect sellers to become more lenient with the pricing as the inventory remains on the market for a longer period of time. Rates may begin to normalize as the summer rush ends.
Winter (November to February) is quiet and very slow as buyers are distracted with cold weather and holidays. You may find less competition and potentially better deals, as sellers may be more eager to negotiate. Some landlords may offer incentives for longer leases to ensure consistent income.
Rental Income Potential
Homes for sale in Los Cabos, Mexico, are always in high demand as domestic and international tourists both get attracted towards the place, especially during the peak seasonal times.
From luxury villas to budget-friendly condos, there’s a wide range of properties that can cater to different types of travellers.
Los Cabos has experienced substantial real estate appreciation over the past decade, driven by tourism and ongoing development projects.
The region's appeal as a luxury destination with beautiful beaches and a vibrant community can sustain demand and contribute to long-term appreciation.
However, with the idea of rental income also comes the property maintenance. This is very serious in the case of foreign investors.
Such a scenario demands the availability of a real estate management company that can keep your property in optimal condition without your local presence.
Conclusion
No matter what the purpose is, purchasing a home usually demands a trustworthy real estate agent or company. It is very essential for the foreign investors, yet for the locals, it proves to be a smart step.
Taking assistance from Cabos Finest makes sure that you have plenty of homes for sale in Los Cabos, Mexico, to select from. That too with experience and knowledge to surpass the area's laws and regulations. To know more about them, visit their website.
