The perfect fall, Cabo weather that makes every day absolutely remarkable is finally upon us. It was slow coming this year, with hot, humid temperatures lasting until the beginning of November. It appears the lazy days of summer translated into a lull in sales activity as well. However, we are back in season and anticipating a strong winter selling season.
To recap 2011 numbers, the fixed week ownership type again saw the highest sales by number with eight (plus two more under contract). For the first time in several years, we saw sales in two bedroom villas as well as three bedrooms. The average price for the fixed week sales was $97,187, which is a higher average than 2010 numbers, when 12 FW were sold. We are seeing a trend in higher prices here, but we don’t want to exaggerate, as the fact is that we will still likely see sales on either side of $100k in the coming year.
The AR ownership type (1/8th, 2/3 bedrooms) saw an increase in number of sales this year with a total of six over the four of last year. The average price has taken a toll and has dipped back from the 15% increase we saw in 2010. Average sale price this year is $194k, and we would like to continue to impress that no seller needs to sell below or much below that average. The low was $185k. Supply continues to hover around the same, but we implore anyone over $250k to consider dropping your price more to market or pull it off the list temporarily to limit supply, which will allow us to get to your desired sale price faster. We see this ownership type selling well this winter due to price point and value.
The four bedroom, 1/8 ownership type (LV) has seemed to have stalled, which unfortunately leads us to believe the lowest list price of $399k is still above what market will bear. I can only attribute this to what buyers sense is a palatable cash purchase in this down economy, and therefore ‘settle’ for a 2/3 bedroom in some cases. We only saw one membership sold in 2010 at a fairly reduced price.. We have eight for sale, which is a higher supply than we’d like, but not as high as we’ve had. As many may know, the Esperanza whole ownership next door (APRE) started selling 1/12th and 1/6th shares in a four bedroom villa, but only two clients have purchased this and neither one of them was a suitable candidate for the LV, for different reasons. One wanted the quieter lifestyle that APRE affords. The other couldn’t afford the $399k list price and would have bought the AR if APRE didn’t have this option. We are keenly tracking if this presents competition for the LV sales, and to date we cannot make such a judgment.
Finally, the oceanfront three bedrooms (HV) saw some action this year. This can perhaps be ‘competition’ to the LV more than any other ownership type, as we have sold a couple half memberships creating a whole 1/6th sale at heavily discounted prices. The average price for a 1/6th at this time is $731k, but more have sold this year than any other year in resale history. Selling in halves would be more in line with pricing of the four bedrooms. We currently have three for sale at $800k and $875k.
Esperanza Real Estate Company placed a half page ad in Coastal Living Magazine’s Ultimate Beach House edition in October. We have seen more than 100 leads come from this exposure, and our website optimization and upgraded Facebook integration have really helped with hits on our website that continue to bring us leads weekly.
As always, if you would like a one on one consultation please stop in our office on your next visit or drop us a line. We will continue to work very hard in selling Esperanza and your membership the best we can.
The EREC Team