In this latest video from Nick Fong, the founder and broker of Ronival Real Estate, Nick reveals what’s behind the recent price reductions in the local Baja Sur real estate market. Fortunately, there’s nothing to be concerned about, since these market adjustments are normal. Nick has grown Ronival Real Estate to become the largest brokerage in Baja Sur. That means, he knows the pulse of the market very well.
After uncovering the reason for the latest price reductions seen in the market, take a look at the seasonal affect on real estate. Also, see just how summertime market is so different in Baja California Sur. Therefore, continue reading to learn what is going on in the Baja California Sur real estate market from the source: Nick Fong.
Why have there been price reductions recently?
Clients of Ronival Real Estate have been asking why there have been more price reductions recently versus the continuous rising prices over the last two years. In the video, Nick answers this by stating an understandable reason. He says that sellers have been aggressively pricing their properties higher than what the comparables are showing. This is because the market has been increasing prices steadily for two years now.
Recently, the market has slowed down. This current market is telling our sellers that their prices are a bit too high. As such, you cannot price 20 or 30 percent above comparables right now. Today, Baja Sur is seeing price reductions as an adjustment to how prices are determined. As such, they will continue to adjust down until listing agents give the advice sellers need – the market has slowed down.
The seasonal affect and why summer is different in Cabo
See just how the seasonal affect in the Baja real estate market is happening right now – at the end of summertime. There is a summer affect in the real estate market. Most real estate markets not dominated by second-home boast a summer affect that are really quite active.
Baja California Sur presents something quite different. In fact, it’s just the opposite – slower, with fewer buyers. If you are selling your property, it will remain on the market for a slightly longer period of time.
Now for the winter affect. The good news is that this affect happens in a big way in Baja California Sur. To explain, this is the high season there. That means, there are more buyers and less market time. So if you’re a seller, you will sell your property much quicker.
Uncover the Baja Sur real estate market changes
Interest rates are rising and inflation has been affecting the economy. As such, there’s a growing fear of the hot real estate market starting to cool off. Also, there are many people that think the market is sliding downward. Because of this, it’s important to take a look at the details from an inside perspective. As such, Aaron Cuha is the right person to interview about this.
As Aaron mentions in the video, the market seems to be volatile when you watch the news. As you probably know, there are historic inflation numbers that have caused the Federal Reserve to increase interest rates a few times. On top of that, there was a mortgage-backed securities issue the Fed needed to address. In the end, they recently raised rates by a half-of-a-percent.
Work With Ronival Real Estate
Ronival Real Estate has helped thousands of buyers and sellers across Los Cabos since 2010. If you’re interested in Cabo Real Estate, our team can assist with everything from showings and negotiations to closing and property management. Have questions? Contact us here or call +52 (624) 227 5766.
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