Real Estate in Cabo
A drive around Pedregal at present will convince you that nearly everything is listed and must be sign of the financial crisis we are all watching unravel. The truth is that while some of the listings are recent the quantity of 'For Sale' signs is more to do with the lack of purchases in the last 18 to 24 months.
Cabo during 2002 to 2006 saw huge increases in house prices and development. The Cabo market became overheated and was due a correction even before the down turn in the real estate market in California and other parts of the US. The fall in house values added to the screeching halt that occurred in re-sales of homes in Pedregal and some of the more established communities in Los Cabos.
During the last 12 months there have only been a couple of sales in Pedregal, insufficient to provide enough data to assess the status of the market. Most appraisals are performed using comparative information but if there is nothing to compare to it is impossible to know how far the market has fallen or when it will stop.
I real estate the true value of a property is only found when you have a vendor, a buyer, and an agreed price. What is evident is that Cabo remains a very desirable place to own a home for folks from the US and Canada. Lots and parcels of land are selling, construction continues even if it is at a slower pace than 12 months ago. If you are interested in buying in Cabo it is a good time to be looking, if you are looking to invest it is even better.
Any downturn in an economy will cause some people to need to second homes, particularly if those properties are not producing income. Often this will be the only major asset they can look to realize. With many new home owners in Cabo this is exacerbated because the house is costing money to maintain and they may have needed to finance against their main residence in the US to buy the house in the first place. It is to be expected that there are some owners who need to sell, if the financial crisis continues for any length of time and credit becomes even harder to find that number can only increase.
The result is that real estate will become even more of a buyers market than it is already. Anyone with money looking for opportunities should start looking or contact a buyer's agent to have them keep an eye open for distressed sales. If you need help feel free to drop me an email.
Cabo during 2002 to 2006 saw huge increases in house prices and development. The Cabo market became overheated and was due a correction even before the down turn in the real estate market in California and other parts of the US. The fall in house values added to the screeching halt that occurred in re-sales of homes in Pedregal and some of the more established communities in Los Cabos.
During the last 12 months there have only been a couple of sales in Pedregal, insufficient to provide enough data to assess the status of the market. Most appraisals are performed using comparative information but if there is nothing to compare to it is impossible to know how far the market has fallen or when it will stop.
I real estate the true value of a property is only found when you have a vendor, a buyer, and an agreed price. What is evident is that Cabo remains a very desirable place to own a home for folks from the US and Canada. Lots and parcels of land are selling, construction continues even if it is at a slower pace than 12 months ago. If you are interested in buying in Cabo it is a good time to be looking, if you are looking to invest it is even better.
Any downturn in an economy will cause some people to need to second homes, particularly if those properties are not producing income. Often this will be the only major asset they can look to realize. With many new home owners in Cabo this is exacerbated because the house is costing money to maintain and they may have needed to finance against their main residence in the US to buy the house in the first place. It is to be expected that there are some owners who need to sell, if the financial crisis continues for any length of time and credit becomes even harder to find that number can only increase.
The result is that real estate will become even more of a buyers market than it is already. Anyone with money looking for opportunities should start looking or contact a buyer's agent to have them keep an eye open for distressed sales. If you need help feel free to drop me an email.
posted by Huw at
12:18 PM
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