The Real Estate Market in Baja California Sur in 2024

The real estate market in Baja California Sur remains highly active in 2024, characterized by heightened competition that has transformed the landscape from the peak years of 2021 and 2022. While those years saw rapid sales with little competition, 2024 presents a different scenario. Sellers now face a more challenging market, with approximately 30% fewer units going under contract compared to previous peak years. This shift demands new strategies and approaches for both sellers and buyers in the region.

Market Dynamics in 2024

The Baja California Sur real estate market has experienced a notable rise in competition among sellers. With fewer units going under contract, sellers must adopt more strategic pricing and marketing tactics to attract buyers. This competitive environment has significantly altered the dynamics from the boom years of 2021 and 2022, requiring sellers to adapt to the new market conditions.

 Buyers' Market: Opportunities and Challenges

For buyers, 2024 offers a unique set of opportunities and challenges. The increased inventory includes a higher proportion of new construction properties compared to resale units. This shift provides buyers with more choices but also means that turnkey-ready properties are less common. Buyers must consider the benefits of new constructions against the convenience of move-in-ready homes.

New Construction vs. Resale Units

The market in 2024 is heavily skewed towards new construction properties, which often feature modern amenities and designs appealing to contemporary tastes. However, the scarcity of turnkey-ready properties can be a drawback for buyers seeking immediate occupancy. The choice between new construction and resale units will depend on the buyer's preferences and timeline.

Future Prospects for Turnkey-Ready Properties

Looking ahead, the market is expected to see an increase in available turnkey-ready properties as current construction projects reach completion. This anticipated influx will create excellent opportunities for buyers who prefer move-in-ready homes. As these projects are completed, the balance between new constructions and turnkey-ready properties is likely to shift, offering more options for buyers in the coming years.

 Influence of Political Events on Real Estate

The dual election year of 2024, with significant political events in both Mexico and the United States, is expected to influence the real estate market dynamics in Baja California Sur. Historically, U.S. elections have positively impacted the real estate market in the region. Observing trends over four election cycles, it is reasonable to anticipate that the post-election period will bring a favorable boost to the market.

Market Trends Post-Elections

Based on historical patterns, the conclusion of U.S. elections typically spurs increased activity and investment in the Baja California Sur real estate market. This trend suggests that the market will experience a boost following the 2024 elections, creating a favorable environment for both buyers and sellers.

Diverse Property Types in Baja California Sur

The Baja California Sur market is diverse, encompassing various property types including commercial properties, condos, fractional ownership properties, houses, land, and multifamily units. This variety offers something for every type of buyer, from those looking for investment opportunities to those seeking a vacation home or permanent residence.

Key Market Statistics for 2024

In the first half of 2024, the market saw 1,998 new listings and a sales volume of $2.6 billion USD. There were 611 units pending with a value of $590 million USD, and 935 units closed for $671 million USD. The average list-to-sale price ratio was 97%, and properties spent an average of 252 days on the market. These statistics highlight robust market activity despite the challenges posed by increased competition.

Regional Breakdown of Market Activity

Nearly 60% of the pending and closed transactions were in Los Cabos, 9% in East Cape, 15% in La Paz, and 16% on the Pacific side. This regional breakdown shows the concentration of market activity in Los Cabos, which remains a popular destination for real estate investments. The distribution of activity across different regions indicates a healthy demand for properties throughout Baja California Sur.

Seller Strategies in a Competitive Market

In this competitive market, sellers need to adopt effective strategies to stand out. Correctly pricing properties is crucial, as is employing robust marketing tactics. Highlighting unique features and leveraging professional photography and staging can make a significant difference. Sellers should also be prepared to negotiate and offer incentives to attract buyers.

Buyer Strategies in a Broader Inventory Market

For buyers, navigating the increased inventory requires a strategic approach. Working with a knowledgeable real estate agent can help identify the best deals and negotiate favorable terms. Buyers should consider their long-term goals and be open to both new construction and resale properties to find the best fit for their needs.

Investment Opportunities in 2024

Despite the competitive landscape, 2024 offers promising investment opportunities in Baja California Sur. Areas like Los Cabos and La Paz continue to attract investors due to their growth potential and appeal. Long-term prospects remain positive, with expected returns driven by ongoing development and increasing demand for properties in these regions.

Challenges in the Current Market

The current market is not without its challenges. Economic factors, such as inflation and interest rates, can influence buyer behavior and market dynamics. Potential risks for buyers and sellers include fluctuating prices and the availability of financing. Staying informed about market trends and economic conditions is essential for making sound real estate decisions.

The real estate market in Baja California Sur in 2024 is characterized by increased competition and a shift towards new construction properties. While sellers face challenges in a competitive market, buyers have more choices, albeit with fewer turnkey-ready options. The dual election year is expected to bring a favorable boost to the market, continuing a trend observed over previous election cycles. With diverse property types and promising investment opportunities, Baja California Sur remains a vibrant and attractive real estate market.

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