Cabo San Lucas is a famous resort town loved for its vacation and retirement lifestyle. Home prices are affected by the pull of international buyers who seek out this premier location. The average cost of homes in Cabo San Lucas sits around $1 million. However, there are plenty of options above and below this price point. All feature a different mix of seaside amenities, city proximity, and property specifics. Here’s everything you need to know when starting your search in Cabo San Lucas.
Residential real estate
Nailing down the average cost of a home in Cabo San Lucas can be tricky. This is because many high-priced purchases happen off the market. Prestigious developments include The Cove Club, Chileno Bay, Montage, El Dorado, and Costa Palmas. Reports may also not represent the number of land sales that occur in the area. Although Cabo San Lucas has experienced some cooling trends, the fast sales pace keeps prices high.
Single-family homes
In quarter four of 2022, the
average selling price for houses in Cabo San Lucas was $1.138 million. This is a 2.7% increase compared to the previous quarter. The median selling price of houses was lower, at $520,000. This is a 4% increase compared to quarter three. Average selling price can be skewed by higher home purchases. Median sales price can provide a more accurate view of prices for all purchases by eliminating outliers. Even so, a high average selling price demonstrates that many houses in the area sell at a high price point.
Overall, houses sold receive 100.7% of their list price. This is up from 98% last quarter. The increase is also reflected in home sales, which have risen 7% compared to last quarter. The end of the year and the beginning of this year has sparked a rise in buyer demand. This keeps home prices high in the area.
Condos
In quarter four of 2022, the average selling price for condos in Cabo San Lucas was $580,000. This is a 10.6% increase compared to the previous quarter. The median selling price for condos is $379,000. This is a 20.3% increase compared to quarter three. Once again, average prices show higher-priced sales, while median prices represent the price point of most sales. Condos that were listed received 99.7% of their average list price. This is up slightly from 99% last quarter. Condos haven’t seen the same demand as homes. Sales have decreased by 3% compared to quarter three.
What affects home costs?
Several elements affect the average cost of homes in Cabo San Lucas. Location is a major player in home prices. The size, condition, and renovations also impact its value. Larger and newer homes that are move-in-ready are more valuable to buyers. Weigh these elements when understanding a home’s value.
Location
Buyers looking in popular vacation spots like Cabo San Lucas are willing to pay generously for its prime location. It’s a significant advantage to be near local amenities, avenues of travel, natural attractions, and great services. Aspects like surrounding development, quality school districts, and a strong economy are also desirable to investors. When considering a home’s price, review what the location is providing.
Homes in Cabo San Lucas have access to a variety of amenities. Its expansive beaches are famous for marlin fishing, swimming, snorkeling, and other water sports. Many luxury resorts are located right on the water and provide extensive services. On-land entertainment is plentiful any time of day. Reserve a tee time at a golf course with an ocean view. Or explore the surrounding desert on horseback. The nightlife pops with bars and clubs that stay open until dawn.
Size
The average cost of homes in Cabo San Lucas is also affected by size. A measure commonly used in real estate is the price per square foot. Square footage is worth much more in cities with limited space, like New York and San Francisco. Buyers conceptualize size by judging the amount of usable space. These include rooms, bathrooms, garages, attics, and outdoor areas. Homes with more usable space have higher costs.
There are many home styles in Cabo that provide a range of usable space. Spanish Villas are popular for their arched and curved design emphasizing outdoor features. These range from two-story homes to expansive estates. Smaller properties like Casitas are also common. This property type emphasizes surrounding landscape views. Upscale constructions like Haciendas sprawl luxuriously with their rustic ranch style.
Condition
A home that is new or in excellent condition is often worth more. Buyers value the convenience of a move-in-ready home. Newer homes generally have fewer maintenance issues and come equipped with updated systems. Older homes that have weathered a few tropical storms can have lower values. It’s integral that a property is functional. Otherwise, it may not sell unless severely discounted.
Renovations
The types of renovations a home has seen can also boost its value. The value of additions depends heavily on buyer interest. For example, if a home in a modest neighborhood features an extravagant outdoor kitchen, local buyers won’t be willing to offer an amount reflective of the upgrade’s value. In luxury areas like Cabo San Lucas, the same renovation will have more success given the buyer pool. Look out for things like a renovated kitchen, a revamped bathroom, outdoor additions, or energy-efficient aspects of a home when evaluating its cost.
Ready to start your search?
There are plenty of factors that impact the average cost of homes in Cabo San Lucas. Currently, the average selling price for single-family homes in the area is $1.138 million. This doesn’t include off-market sales, which can go for much higher. It’s always best to work with a local real estate agent to access all your options. They can guide you toward properties within your desired price range. When you’re ready to start your search, contact experienced local agents
Paul and Daria Goldsmith at the Goldsmith Group for expert help.
