La Paz, BCS - Welcome to our Second Quarter, 2015 Mexico Resort Real Estate Newsletter. In this edition, we bring you a Los Cabos market report courtesy Martin Posch of Windemere Realty, a report from the National Association of Realtors, and economic news from Mexico.

Los Cabos Residential Market Report
Courtesy Martin Posh

The residential real estate market is recovering slowly, here in Los Cabos. All the numbers reported are compared to the first five months of 2014.

The good news is that the number of sales (closed transactions) for the first five months has gone up a 4% to 167 transactions.

Total sales volume is down by 37% to $68.272.000 US Dollars.

Total transactions under contract are down 40% to 129. The average sales price is down 39% to $409,000 US Dollars.

Now let's take a look at the numbers for the condo & single family home market:

During the first five months of 2015 the total number of closed transactions for condos was down by 21% to 71 units. The total sales volume was down by 30% to $25,230,000 US Dollars. The average sales price was down 12% to $355,000 US Dollars. The list to sales ratio is up by one point to 91%.

Closed transactions for single family homes were up by 35% to 96 units. The total sales volume is down by 40% to 43,042,000 U.S. Dollars. The average sales price was also down by 55% to $448,000 U.S. Dollars. The list of sale ratio was down three points to 87%.

These numbers reflect a lack of sales for properties of one Million plus US Dollars. Total numbers of closed sales for properties above $1,000,000 US Dollars was down 52% to only 14 closed escrows. The total sales volume is down by 72% to 19,578,000 US Dollars. The average sales price was down by 42% to $1,398,000 USD.

News from our NAFTA Team and Other Economic News

Mexico's Economic Reforms Open Wide Opportunities for Investment

Mexico's competitiveness agenda, championed by President Enrique Peña Nieto and widely supported by the Mexican Congress, includes specific actions oriented toward promoting larger inflows of foreign investment by opening strategic economic sectors to private participation. By virtue of this agenda, the energy, telecommunications and financial services sectors have lifted previous limits to foreign investment, unlocking 29% of Mexico's $1.2 trillion GDP, to new business opportunities.

Mexico Makes Strides in Protecting Intellectual Property Rights

Mexico has emerged as a leader in promoting effective software asset management (SAM) in the public sector and protecting intellectual property rights. On February 25th, 2015, the Mexican Institute of Industrial Property (IMPI in Spanish), Mexico's intellectual property government agency, became the first patent office in the world to be awarded the Verafirm Certification by the BSA | The Software Alliance, a global leading association of software companies.

Success Stories

1. Volkswagen Expands Assembly Plant in Puebla
2. Toyota to Invest in Mexico to Build Corollas
3. Heineken is Building a New Brewery in Mexico
4. Magna Invests in a New Exteriors Plant in Mexico
5. IBM Brings its Cloud to Mexico

Late Breaking Economic News:

Grupo Bimbo has announced the purchase of two Canadian bakeries. These are Italian Home Bakery and Canada bread. A few years ago Bimbo bought Sarah Lee.

T.T. Blues is opening the world's most modern denim plant in Coahuila. Once production goal is met, T.T. Blues will commence producing premium fabrics.

Mexico has signed the Pacific Trade Alliance. Other signatories to this free trade treaty are. Columbia, Chile and Peru.

National Association of REALTORS® News

U.S. Home Sales Strong in First Half

Existing-home sales increased in June to their highest pace in over eight years, while the cumulative effect of rising demand and limited supply helped push the national median sales price to an all-time high.

Existing-Home Sales Rise in June as Home Prices Surpass July 2006 Peak

All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months. Read more at realtor.org.

Global Mexico Concludes First Half with a Class in Spanish

Global Mexico (IIGM) is the organization that was created to bring international education to Mexican REALTORS®. During the first half of 2015, classes certified by the National Association of Realtors (NAR) and the Arizona based Center for Real Estate Negations (RENI) were delivered in Mexico.

NAR classes included a Certified International Property Specialist (CIPS) Institute and Accredited Buyer Representative classes (ABR). The RENI class Certified Negotiation Expert (CNE) was also presented.

Global concluded the first half of 2015 with the ABR class being taught for the first time in Spanish. Linda Neil, a Global Mexico Founder, was the instructor for the class held in La Paz, B.C.S. It was attended by members of the two local real estate associations (AMPI and ASPI). A special salute to Monica Rodriguez, ABR, Manager of the La Paz Settlement Company® office for her support in organizing the event.