Located on the southern tip of Mexico’s beautiful Baja California Peninsula, Los Cabos is a municipality encompassing two towns, Cabo San Lucas and San José del Cabo. Beachfront properties and pristine gold courses link both of these gorgeous towns. Given the area's incredible beauty, many expatriates who live outside of their native countries agree that Los Cabos is one of the best places
to live in all of Baja California. However, before moving to a new area, it’s best to learn the current state and future forecasts of the local market.
Here are the prices, trends, and forecasts for the Los Cabos real estate market in 2023.
Los Cabos housing market forecast 2023
Steady increase in home values
In recent years, Los Cabos has experienced steady growth in the local real estate market. Home appreciation has been on an upward trajectory as more expats continue to move to the area. While the area's appreciation rate has slowed down slightly, many experts still predict prices will continue to increase moving forward. The allure of the area and ongoing infrastructure development have helped increase the value of homes, and those factors aren’t changing anytime soon, which means home prices will continue to climb throughout the remainder of 2023.
Continued infrastructure developments
Developments in Los Cabos’ infrastructure
have helped make the area a top tourist destination in recent years. These developments have also helped boost the local real estate market. Several infrastructure projects, including new shopping centers, hospitals, and road improvements, have elevated property values in their vicinity. Los Cabos homeowners have directly benefited from these developments, seeing a positive increase in the value of their homes. Fortunately, more developments in the area are on the horizon, which means homes will further appreciate moving forward.
Further demand for housing
As more expats train their eyes on Los Cabos, the demand for houses in the area has skyrocketed. This demand will likely continue throughout the rest of the year and beyond. In fact, many residents from the United States and Canada already view Los Cabos as a viable option for relocation. Whether these people are looking for a second home or primary residence in the area, the demand for houses will likely outpace the available inventory, boosting the already increasing home values.
Decreasing interest rates
in the United States hit their peak in recent months, hovering around 7 percent, which is a significant increase from the 3 percent mark they hit a year ago. Still, many experts believe these rates will likely decrease soon, dipping below the 6 percent mark, spurring a surge in home sales. Since the majority of buyers in Baja, California come from the United States, the Los Cabos real estate market will likely mirror that of the U.S. with a surge in sales as interest rates decline further and further.
Baja California housing market trends 2023
Baja California has always been a hotspot for expats looking to buy houses outside of their native countries. While that trend continues to this day, there are a few other trends to be aware of in 2023. For instance, more tech-savvy buyers have flooded the local market, which means realtors and developers in the area have had to adopt new practices, such as utilizing virtual tours, augmented reality interfaces, and installing the latest in smart home technologies. Additionally, younger families and retirees are on the hunt for mid-range homes, pushing developers to build mixed-use communities that cater to the various budgets of buyers in the market. Lastly, in the age of rental platforms, such as Airbnb, many real estate investors in the market are looking for properties they can lease to tourists on a short-term basis.
Current Los Cabos median home prices
At the beginning of 2023, Los Cabos set a record-high
increase in home prices from the previous year. The price of homes in the area increased by over 14 percent. Currently, a single-family home in Cabo San Lucas starts for around $250K; however, that number jumps up to $400K for houses closer to the ocean. As more expats continue to flock to this region of Mexico, demand for homes in the area will also increase, further pushing the median housing cost higher and higher.
Should you invest in Los Cabos real estate?
Los Cabos has seen significant growth in the real estate market in recent years. Many expats continue to view the area as a good option for a primary residence or a second home. As demand for the area continues to grow, houses will further appreciate, which means investing in property in the area is a solid investment. Still, before investing in any area, it’s best to consult with an experienced local real estate agent. Your agent can help you secure a good deal on a home, further ensuring you see a greater return on your investment down the line. Additionally, your agent can help establish a smooth transition as you relocate to a new country.
Get help with the Los Cabos real estate market
Los Cabos is an excellent place to call home, featuring miles of pristine beaches and resort-style amenities. Expats worldwide continue to flock to this region of Mexico, looking for a second home or primary residence. Given ongoing infrastructure developments and the high demand for housing in the area, owning property in Los Cabos will likely pay off when the time comes. Whether you’re looking for a vacation home or to relocate entirely to the area, having a skilled real estate agent on your side is critical.
Baja Surf Realty
is a team of Los Cabos real estate agents with years of experience buying and selling houses in the area. Using their local market knowledge, the team knows what it takes to secure great deals on properties in this part of Mexico. If you’re ready to dive into the Los Cabos real estate market, contact Baja Surf Realty today.