Casita Puesta del Sol
2024: should you buy or sell your home?
The real estate market in Baja California Sur continues to show resilience in 2024, though it has transformed significantly since the peak years of 2021 and 2022. During those years, sellers enjoyed brisk sales with minimal competition. However, 2024 has brought about a more competitive landscape.
Sellers now face the challenge of navigating a market with approximately 30% fewer units going under contract compared to the high years. Meanwhile, buyers benefit from a broader inventory, including an increasing number of new construction properties compared to resale units. This shift provides more choices, but also means turnkey-ready properties are less abundant.
The market is expected to see an increase in turnkey-ready properties as ongoing construction projects reach completion, promising excellent opportunities for buyers in the coming years.
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Election Year Dynamics
As 2024 is a dual election year with significant political events in both Mexico and the United States, these elections are anticipated to influence the real estate market dynamics. Historically, U.S. elections have positively impacted the Baja California Sur real estate market. Observations over four election cycles suggest that the post-election period typically brings a favorable boost to the market.
Diverse Market Transactions
The market encompasses various property types, including commercial properties, condos, fractional ownership properties, houses, land, and multifamily units. Here are key statistics from the first semester of 2024:
• New listings: 1,998
• Sales volume: $2.6B USD
• Pending transactions: 611 units and $590M USD
• Closed transactions: 935 units for $671M USD
• List to sale price ratio: 97%
• Average days on market: 252 days
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Regional Insights
High Sales Volume in Cabo Corridor
The Cabo Corridor leads with a high number of active, pending, and closed transactions. The high sales volumes and a near-perfect list to sale ratio (99%) suggest strong market confidence and high demand. The average sales price of $592,268.57 indicates a premium market ideal for luxury investments.
Balanced Market in Cabo San Lucas
Cabo San Lucas shows robust activity across all transaction stages. The balanced market with a 98% list to sale ratio and an average sales price of $430,057.90 appeals to various buyer segments, from mid-range residential to commercial investors.
Premium Market in San Jose del Cabo
San Jose del Cabo stands out for its high average sales price ($935,771.86) and a solid list to sale ratio (95%). This area’s higher price point and significant sales volumes make it ideal for luxury residential developments and high-end investments. The shorter average days on market (177 days) reflect quick sales and strong demand.
Emerging Hotspot in East Cape
East Cape’s substantial sales volume in active transactions ($552,418,058.00) and near-perfect list to sale ratio (98%) highlight its emerging status as a high-potential investment area. The average sales price of $375,263.93 and longer average days on market (365 days) suggest opportunities in eco-tourism and beachfront properties.
Strong Demand in La Paz
La Paz exhibits high demand with a 101% list to sale ratio, indicating properties often sell above their listed prices. The average sales price of $359,049.72 and significant transactions support La Paz’s appeal as a growing urban center, suitable for a wide range of investments, including affordable housing and commercial developments.
The real estate market in Baja California Sur for 2024 presents a complex yet promising landscape. Increased inventory and competition, a shift towards new constructions, and the influence of political events are shaping the market dynamics. Historical trends suggest a positive post-election market boost, particularly following the U.S. elections. The diverse range of active, pending, and closed transactions across various regions and property types underscores the market’s vibrancy and potential. Buyers and investors are presented with numerous opportunities, especially as new constructions come to completion, providing more turnkey-ready properties.
The market’s resilience and adaptability to changing conditions continue to make Baja California Sur a compelling destination for real estate investment.
Do you want to know more? Contact me @nickfong_ronival and @ronivalrealestate on Instagram, and listen to The Nick Fong Podcast on your favorite audio platform or on YouTube.
Casita Puesta del Sol