Los Cabos Market Report Introduction
We are delighted to share our Los Cabos Real Estate Market Report Q2 2023 vs. Q2 2022. Los Cabos’ climate, culture, hospitality, and growing number of world-class events draw visitors year-round. The first half of 2023 saw a 16% increase in tourism over 2022, surpassing other Mexican destinations. Post-pandemic economic growth and rising full-time residents in Los Cabos have also maintained demand. In the summer, we can see several familiar trends and some intriguing new patterns in market activity for the first half of the year. As expected, real estate sales trends follow those of direct feeder markets like California, Texas, and Colorado. In the US, affordability concerns and low inventory levels have leveled pricing. The Los Cabos market is similar. Although US inflation and interest rates are not directly affected, buyer activity has returned to pre-pandemic seasonal norms. Market activity has dropped 30%. However, nuances present interesting opportunities for savvy Buyers and Sellers.
New and renewed master-planned communities are developing on larger lots. As investment capital pours in, more Four Seasons, St. Regis, Ritz Carlton, and other resort communities are scheduled to open in the second half of the season. Latin American buyers are also turning to the peninsula due to favorable dollar/peso exchange rates. Sellers have more room to calculate capital gains as the dollar weakens against the peso. With limited inventory and prices in Los Cabos, sales increased in La Paz and Loreto in Q2 2022. Loreto is up 30% over Q2 of 2022, while the peninsula is down 30%, proving that there is always opportunity if you look. Despite trends and predictions, some Los Cabos constants persist. Every year brings more to explore, and real estate’s financial security and aspirational lifestyle make Los Cabos one of the world’s best places to live.