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    The end of an era?

    By Cherine Khouzam
    Remember the yesteryears? Well, in terms of local Real Estate Market in BCS, those were early 2000’s up until early 2008. Ahh… the great Baja Sur Real Estate Market, the ultimate SELLERS’ Market!
    Peaks and dips in Real Estate are related uniquely and solely on offer and demand. The more the demand; the less the offer, and vice versa.
    A Seller’s Market (in Real Estate terms) means that inventory (houses, condos, lots, etc) offered for sale is scarce, thus the demand (people looking) is greater; for example: 1 property = 5 buyers = better overall prices in favour of the Sellers
    That Era ended in 2008 here in our Local BCS Market, and thus began our BUYERS’ market! Where the inventory (houses, condos lots, etc) offered for sale outnumbered the demand (people looking); for example: 5 properties = 1 buyer = better prices in favour of the buyer. Our Baja buyers have been benefitting from remarkable value in the past few years and have taken full advantage of steals and deals.
    Now, before a market changes in favour of one or another, it stabilizes for a while until the next peak. This period is the tricky one for buyers that are still on the fence or are still “thinking about it”. Some of these buyers believe that “it will still drop” and end up missing the opportunities. In fact, a stable market is as unpredictable as a peak in favour of either market.
    NOW READ CAREFULLY: We are presently in a stabilizing market
    And this is where I start my revision: OUR STABILIZING MARKET IS REACHING A PEAK, take a look for yourself:
    los_cabos_market_trend
    Simply stated, BCS inventory is selling rather rapidly as the market’s demand becomes greater. Yes, you read correctly: our inventory is thriving EVEN POST Hurricane! And sometime in the near future we will find ourselves in a Sellers’ Market again and who’s happiest? Our sellers of course!
    So this is pretty much LAST CALL. If there are any interested buyers, savvy investors, dreamers, believers and achievers out there reading this, the trends are in and this is without a doubt, the END of this ERA! Try not to miss this boat as no one knows if, and when, it will once again set sail on the Baja Sur waters.
    For more information about the Real Estate Market in Baja California Sur and its lifestyle, send Cherine an email to cherinek@cbriveras.com
     

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    2 Responses to “The end of an era?”

    • Allan Scott

      Written on

      It may well appear that way but with the US headed toward another 2008 market crash driven by cheap money and sub prime car loans. Financial experts who have been watching the markets for over 20 years believe it will come in the next 3-18 months and it will be worse than 2008. It could start with a default in Greece or come as a result of the keeping recession in Brazil.
      When this occurs, the so called boom will all come to an end and Cabo as well as all tourist areas will face the serious property devaluation.
      There will be buying opportunities but that will be after the crash for those who where on the sidelines. Just like post 2008, the smart and savvy doubled their investments.

      Reply

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