Heading into 2027, buyers can expect a more balanced and selective Los Cabos real estate market, with greater inventory and negotiating opportunities, while well-located luxury properties continue to hold strong appeal, value and desirability.

A More Selective Los Cabos Real Estate Market

During the first half of 2026, MLS-reported sales across Los Cabos and surrounding Baja California Sur markets totaled approximately $670.9 million, a decrease of 25.2% compared with the same period in 2025. The number of properties sold declined 17.6%, while the average sale price was approximately $842,000.

These numbers don't necessarily indicate declining interest in Cabo real estate. Instead, they point toward a market that is normalizing after several unusually strong years.

Inventory has increased quite a lot, and buyers are taking more time to compare properties, communities, pricing and overall value. For buyers considering Cabo San Lucas real estate or San José del Cabo real estate, this can mean greater selection and stronger negotiating opportunities than we have seen in recent years.

Luxury Real Estate Continues to Shine

One particularly interesting part of the 2026 market is the continued strength of the luxury market.

While overall transaction volume has slowed, high-quality properties in desirable communities continue to attract buyers. The condominium market has also shown resilience, with the average MLS-reported condo sale price during the first half of 2026 reaching approximately $740,000, up 20.1% year-over-year.

Los Cabos also continues to benefit from its international appeal. Nearly four million visitors came to Los Cabos in 2026, and the destination remains very desirable to people from both Canada and the United States. 

What Could the Cabo Real Estate Market Look Like in 2027?

Heading into 2027, we expect Los Cabos real estate buyers to remain selective and value-conscious.

Rather than simply asking whether prices are going up or down, buyers are increasingly looking at location, views, construction quality, amenities, community infrastructure and long-term value.

For sellers, realistic pricing will be increasingly important. With more properties available, homes that are properly priced, professionally presented and effectively marketed should be better positioned to compete.

For buyers, the changing market may create opportunities to negotiate on existing homes, condos and investment properties—particularly when a seller is motivated or a property has spent significant time on the market.

Longer term, the fundamentals that have attracted people to Los Cabos remain very much in place: international accessibility, an exceptional outdoor lifestyle, established luxury communities and continued investment in the region.

The market may be changing, but Cabo remains one of Mexico's most distinctive luxury real estate destinations.

 

Written by Carol Boniuk-Los Cabos Real Estate Specialist.