The Boomers - Part 1

The Boomers - Part I
By Jay West, CIPS, RSPS, TRC
Regional Coordinator for Baja California Sur & Sonora
AMPI Nacional (Mexican Association of Real Estate Professionals)

I did a Google search this morning for Cabo. The number was staggering. 82,200,000 responses to the simple four letter word Cabo.

I then tried a Yahoo search. 24,600,000! I narrowed it down to Cabo real estate on Yahoo. Only 902,000.ah, thats better?

A decade ago, I put my first Cabo website on-line. I am no longer using it today, but back then when www.cabosun.com was new, the word Cabo on Yahoo had fewer than 20 search responses! What happened? Where did this internet thing come from? Who is using it? And why are there 82 MILLION entries for Cabo on Google?

We are booming because the Boomers are blooming! And resort real estate is going to be hot for the next decade. In sales jargon, I am talking sizzling hot. Especially the accessible vacation and retirement resort destinations with undeveloped real estate close to or on the water. Especially places like Los Cabos and the Baja, because we have some of the best water in the world. Imagine that! Coming to Mexico because of the water!

Los Cabos is the 2nd fastest growing municipality in Mexico after Cancun. It has one of the healthiest economies in Mexico and is one of the top destinations in the hemisphere. Millions of the Baby Boomer generation are shopping for second or retirement homes in markets like Los Cabos. There is no end in sight.

Some more food for thought from the National Association of REALTORS in the U.S.A.:

In 2004, the National Association of REALTORS (NAR) identified over 108,000 resort and second-home specialists through its network of state and local boards and associations. Analysis of the 2005 Profile of Second-Home Buyers reveals that the number of REALTORS handling resort and second-home transactions is likely to be far greater than the 108,000. In 2004, there was a record 2.82 million second home sales, up 16.3 percent from 2.42 million in 2003. Vacation-home sales rose 19.8 percent to 1.02 million in 2004 from 850,000 in 2003. The vacation and second home market is undergoing a period of tremendous growth due to the impact of the Baby Boom generation and the heightened interest in real estate investment. NAR has been encouraging members to select their Field of Business specialty. To date, approximately 4,382 REALTORS have identified themselves as Resort Specialists.

Member responses came from 46 states and the Virgin Islands. The following property types were recognized:44% Ocean38% Golf20% Lake18% Mountain11% Skiing

As defined by NAR: A Resort Specialist is a real estate practitioner who facilitates the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational and/or vacation destination.

NAR established a professional curriculum to earn the designation of Certified Resort and Second-Home Property Specialist and the first designees were named in January, 2006. Three members of the Los Cabos real estate community were awarded the RSPS designation in the inaugural class including Julie Kershner, President of AMPI Los Cabos in 2006 (Prudential California Cabo Gold), and Teena Jones Broker/Co-owner of CaboRealty. I am proud to be in such company as the third designee.

I will have more on the resort and second-home market in The Boomers Part II.

Jay West is a Los Cabos Realtor and Co-owner/Broker of CaboRealty with his wife, Teena Jones. He serves as the Regional Coordinator of Baja California Sur and Sonora for the Mexican Association of Real Estate Professionals (AMPI) and is a member of the National Association of Realtors (USA) having earned the designations of Certified International Property Specialist and Resort and Second-home Property Specialist as well as the Transnational Referral Certification from the International Consortium of Real Estate Associations. He is Past President of AMPI Los Cabos and past Chair of the Executive Committee of Los Cabos MLS. Jay specializes in acquisition and marketing services to developers and also serves as Director of Sales at Villas de Cortez. He welcomes your comments and can be reached at: West@CaboRealty.com and www.TheEastCape.com