Are We In A Seller’s Market?

Could be

BY HEATHER BORQUEZ

In my opinion and in the opinion of many of my colleagues, La Paz is in the beginning of a mini boom, perhaps even a bit of a seller’s market.  Tourism is up, numbers are up, inventory of properties is down and many more people are looking for properties.   Homes are selling!  I am not talking about the mega boom places such as Vancouver experienced, but rather a much stronger market than we have seen in La Paz for quite some time. It is clear La Paz has been discovered.

Recent articles in Forbes and Entrepreneur magazines have been touting the charms of La Paz so if we weren’t discovered before, we surely will be now.  And all of that is good for business. 

Forbes says to “forget about Tulum and Cancun and to come to Baja and in particular to La Paz, the little gem that sits on the Sea of Cortes side of the peninsula, …..because this is a place that has been drawing people who are in the know for years because La Paz  is a place for travelers, not tourists”. Of course, we who are already in the know, have known that for years  but it is still nice to hear it confirmed. 

Entrepreneur magazine recently stated that La Paz, BCS was one of the best places in Latin America to start a business.  Being a capital city and in a place where all kinds of services are needed, especially in the tourism industry, gives entrepreneurs a real chance at success.  Overall economic growth in the State of BCS was 17% in 2017 and 18% in 2018, all of which bodes well for the state and its population.

So how has this affected the real estate market? 

It is a little hard to be finite with our numbers, as many sales take place outside of the MLS system and its data.  But if we look just at MLS data we see the following positive trends in our market:

average house prices have climbed from $114,000 in 2017 to $149, 000 in 2018. 

Absorption rate has changed from 30 months in 2017 (to absorb all the available inventory) to 23 months in 2018

Median sale price went from 134,000 USD in 2017 to 158,000 USD in 2018 (a 17.9% increase)

Number of sales are up too, and inventory is down.  In 2017 we had 131 sales, while in 2018 we have had 171. 

So while we aren’t in a boom market, we are certainly going strong, and if people want to list their properties, now would be a good time to do it.

Heather has been in the real estate business all her life as an investor and landlord. She qualified and was licensed as Realtor in Canada in 2009 but didn’t practice at that time. She was with the UN, Plan International and Care Canada mostly in Africa and Latin America. from Canadian Lung Association as CEO in 2012 and moved to Mexico. She has been working with Diamante Realtors for 3 years in La Paz and loving it! Married to a builder so she gets lots of insider tips on construction and design. She has 7 adult kids and 2 beautiful granddaughters in Vancouver, Ottawa and Mexico City.

Email her at: heather@diamanteassociates.com