As we step into 2024, the real estate market in Todos Santos is presenting a fascinating evolution. Long known as a vibrant market, recent trends suggest a transition that merits a closer look. In this post, we dive into the latest data to understand what's happening in this dynamic market.
The Rise in Inventory
The past year has been a rollercoaster for the Todos Santos real estate market. One of the most significant trends we observed in 2023 was the consistent increase in active listings for both land and houses. This growing inventory is one of a few significant shifts in key indicators that suggest we are moving from what has traditionally been a seller's market towards a landscape that might favor buyers.
- Land Market: Starting at 1,058 listings in January, there was a gradual increase, peaking at 1,078 by December. This trend suggests more options were available for buyers throughout the year.
- House Market: The active listings for houses also saw a considerable increase, starting from 579 in January and rising to 777 by December.
Changes in Prices
The price trends in Todos Santos throughout 2023 showed some fluctuations, particularly in the housing market, where a significant decrease in average sale prices was noted.
- Land Prices: Both average and median sold prices for land showed fluctuations but didn't consistently increase, indicating a stabilizing market.
- House Prices: There was a noticeable decrease in the average sale price of houses. Starting the year at a high of $1,778,549.94 in January, prices fluctuated and ended significantly lower at $569,211.38 in December, depicting a sharp decrease.
Market Pace: Absorption Rate and Days on Market (DOM)
The market's pace slowed down in 2023, as evidenced by the increased absorption rate and the longer DOM.
- Absorption Rate: This rate increased for both land and houses, indicating that properties were taking longer to sell.
- DOM: Both segments showed an increase in average and median DOM, suggesting that properties stayed on the market for longer periods before being sold.
In-Depth Analysis
The real estate market in Todos Santos in 2023 exhibited clear signs of transitioning towards a buyer's market. The increase in inventory, the slower sales pace, and the stagnant or decreasing prices have shifted the market dynamics, offering more leverage to buyers. For sellers, this might mean adjusting expectations regarding selling times and sale prices.
Market Dynamics
With more properties entering the market and staying listed for longer, we’re witnessing the classic signs of a transitioning market. The rise in active and new listings, especially in higher price ranges, provides more options to buyers, potentially easing the competitive tension that has characterized the market.
Final Thoughts
The Todos Santos real estate market is at a crossroads. While it retains elements of a seller's market, the increasing supply and changing dynamics suggest a gradual shift towards a buyer's market. This transition phase is an opportune time for both buyers and sellers to reevaluate strategies and adapt to the evolving landscape.
As we move forward into 2024, these trends provide crucial insights for those looking to engage with the Todos Santos real estate market. Whether you're a buyer seeking more options and bargaining power or a seller adjusting to the new market dynamics, staying informed will be key to making wise real estate decisions. As always, working with knowledgeable real estate professionals can help you navigate this complex market.
Keep in Mind
In markets with limited inventory, each sale carries more weight in determining average prices and other statistical measures. For instance, if most houses in an area are selling around a certain price but then one or two properties sell at substantially higher or lower prices, these outlier transactions can skew the average and median price data. This effect is less pronounced in markets with a higher volume of sales, where the impact of any single sale is diluted among many transactions.
Therefore, while the charts provide valuable insights, they might not fully capture the nuances of the market. A few high-value or low-value sales can disproportionately influence the average sale price, making it appear as though there's a significant shift in market values when, in reality, the general market conditions might be more stable.
This is why in markets like Todos Santos, it's also crucial to look at individual transactions and understand the context behind each sale. Such an approach provides a more comprehensive and accurate picture of the market dynamics.
Diego Guzman