Nick Fong, the broker and founder of Ronival Real Estate, presents why there has been some recent price reductions in the local real estate market local of Baja California Sur. To begin, there is nothing to be concerned about. Market adjustments like this are quite normal. And since Nick has raised Ronival Real Estate to fastest-growing brokerage in Baja Sur, he really knows the pulse of the market.
Once you learn why there have been some price reductions in Baja Sur real estate, check out how the seasonal affect occurs within Baja California Sur. On top of that, uncover how the summertime market is so different there. Now, read on to see exactly what is going on in the Baja California Sur real estate market from Nick Fong himself.
There has been some recent price reductions
As Nick mentions in the video, many of Ronival Real Estate’s clients are asking about the recent price reductions. They are used to the continuous price increases happening over the last two years. Nick states that sellers have been aggressively pricing their properties higher than what the calculation of recent comparables. Since the market has been increasing prices steadily, a new normal must be realized.
The market has slowed down recently. And, the current market is revealing that seller’s prices are just too high. As such, they cannot price 20 or 30 percent above comparables as they have been. To explain, Baja Sur is experiencing price reductions as a price-determination adjustment. Going forward, prices reduce even more until listing agents provide the advice sellers need about the slowing market.
Seasonal affect and why summer is so active
The seasonal affect in the Baja real estate market is happening right now – August 2022. Being that it’s currently summertime, there’s a summer affect in the real estate market. In most real estate markets that are not dominated by second-home purchases, the summer is quite an active time.
In Baja California Sur, it’s just the opposite. It’s typically slower, with fewer buyers. And if you’re a seller, your property will stay on the market for a little longer period of time.
The good new is this: The winter affect happens in a big way. That is when Baja California Sur has their high season. As such, there are more buyers and less market time. If you’re a seller, you’ll be able to sell your property faster.
Changes in the Baja Sur real estate market
Now that interest rates have been rising and inflation affecting the economy, there’s a fear of the hot real estate market cooling off. And, many people are thinking that the market may be in a downward slide. Therefore, it’s important to take a look at the details from an inside perspective. As such, Aaron Cuha is the right person to interview about this.
According to Aaron, the market seems volatile if you listen to the news. This is because there are historic inflation numbers that caused the Federal Reserve to increase interest rates again. Also, there was a mortgage-backed securities issue the Fed needed to address. As such, they raised rates by a half-of-a-percent.
Baja California Sur real estate
Many Americans, Canadians, and people from other countries choose to make Los Cabos and other magical towns in Baja California Sur, Mexico, their home or vacation home. Discover how to purchase your dream home in Baja. Make an appointment with the top Real Estate Broker in Baja: Nick Fong, featured on HGTV’s Beachfront Bargain Hunt.
Since 2010, Ronival has been helping clients find the best homes in Cabo and throughout Baja California Sur. And, they’re highly-skilled negotiators that’ll get you the best price. Whether you plan to buy a property or quickly sell your Baja real estate, they’ve got you covered!
If you’d like to take a tour of a property in Cabo or anywhere else in Baja California Sur, just click CONTACT to inquire. Or, call directly at 619-831-2000. Ronival will be happy to answer your questions You can also schedule a time to show you around this breathtaking location.
Ronival on YouTube
See Nick Fong in action on his Ronival YouTube Channel. Find his videos on the Rovival VLOG, where you can read a short, yet in-depth post. Below is an example of one of Nick Fong’s Ronival videos:
Thank you for reading Discover what’s behind the latest price reduction in Cabo. Be sure to read other posts about Cabo and Baja California Sur on the Ronival blog. There, learn about the many wonderful aspects of Baja California Sur, Mexico, from blog posts like this.