TODOS SANTOS REAL ESTATE MARKET REPORT
There are significant issues people need to be aware of when buying real estate in the Todos Santos, Pescadero and Cerritos region. These include explosive growth combined with a lack of an adequate water supply, electrical power and wastewater treatment with no plan or funding from the municipality necessary to build the infrastructure to support the current and future growth.
Right now, our community’s main concern is the municipality in La Paz is trying to increase the population from the current 15,000 people to 150,000 by replacing our current zoning rules which maxes out the population at 25,000. In addition, residents are extremely concerned about the over-extraction of the aquifers and summer power outages multiple days per week and buyers should be too.
We are the Fastest Growing Area of Baja Sur
As the chart below indicates, more lots have been sold in the Todos Santos region during the past 6 years than any other area in Baja California Sur. Sales in Todos Santos represent 30% of the lots sold in Baja Sur since Cabo San Lucas, San Jose del Cabo and La Paz are mostly over developed and also lack an adequate supply of water.
Water and Power Scarcity Issues
Water, power and wastewater processing issues are covered on our Solving the Water Crisis and Lack of Infrastructure pages on this website.
Lack of Building Inspections
In most countries when you buy a property you receive a comprehensive inspection report requested by the lender. That is not the case in Baja Sur because often times there is no lender so buyers need to find an inspector on their own or go without one. Not using an inspector recommended by your real estate agent is probably a good idea. Best to ask a reputable local contractor to look over the home or condo before you buy.
Also, the permit department at the municipality in La Paz does not thoroughly review the drawings and engineering calculations and does not send out building inspectors to ensure the construction is safe and complies with building codes.
Home Sales and Prices
The source of the charts below is the Multiple Listing Service (MLS) reports for the Todos Santos region from 2019 to 2024. As the charts indicate, COVID and the ability to work remotely created a significant increase in demand for housing, but after reaching a peak of 140 homes sold in 2021 sales dropped to 71 in 2024 and the market remains soft in 2025.
This has resulted in a drop in values from a peak of $1,046,000 in 2022 to $825,000 in 2024.
Condo Sales and Prices
Condo sales, mostly located in Cerritos, have suffered a significant drop in sales with 88 condos sold during the peak year of 2022 dropping to 41 sales in 2023 and 35 in 2024.
The soft demand and number of large condo projects hitting the market has resulted in a significant drop in condo values from a peak of $887,500 in 2023 to $334,000 in 2024.
Cerritos Beach – No Water System and Falling Values
People considering the purchase of a condo in Cerritos Beach should be aware there is no water distribution system, so all water needs to be trucked in which is extremely expensive at 15 times the cost of municipal supplied water.
Eighty percent of Cerritos is illegal as it was zoned for only single-family residences with construction restricted to 15% of the lot’s surface. Unfortunately, the municipality in La Paz issued condo permits in violation of the Todos Santos PDU that has created a lot of unhappy homeowners many now suing the condo projects.
Beware of Pre-Sales
New condo developments generally offer pre-sales. You can tell if it’s a pre-sale because the photos on the listing are renderings, not the actual built project. These are extremely risky investments because the buyer’s deposits and progress payments are used to pay for the construction costs. Instead of a bank being the lender the buyer becomes the lender. Often times the developer requires a 30% down payment, another 30% when they break ground and 20% when the structure is completed but without finishes. This means the buyer has given the builder 60% of the purchase price when they first break ground and 80% before the project is completed.
This is a big problem for the buyer because if the project does not get completed, investors can lose part or all of their investment. And with values and sales dropping (see condo charts below) there is even more risk the developer will not sell enough units to complete the project. This is a very common occurrence in Cerritos.
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We need your help to protect Todos Santos.
If you observe any violations of the PDU and environmental regulations included on this website, please contact us, and we will investigate your concerns and take appropriate action.
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We are a group of citizens doing our best to protect our beautiful pueblo. We would love to have your help as we work to fight against illegal development and create more regulation and oversight into our limited natural resources.
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Your donation will help us stop illegal development, protect our current zoning rules, and fund our efforts to effectively manage our scarce water resources.