2019 Quarterly Update: January-March
Malibu home sales typically start slow in the new year. In previous years, the local market begins to show signs of life in Spring and really take off during Summer. While seasonal factors play a huge role in this cycle, this year began much slower than usual and the numbers paint a clear picture.
The Woolsey Fire that occurred on November 9th wiped out nearly 18% of home inventory causing a pause in the real estate housing market from that moment into the new year. But with nearly 6 months passed since the devastating fires, sales have slowly been rising and a new market for selling Malibu Land has surfaced in light of the many structures lost.
Malibu Beach Sales
On the Malibu Beachside, sales have been low with a mere 8 homes sold and 1 home in escrow. The average amount of days on the market was 107 with an average listing price at $13,358,390 and the average sale price at $7,414,062. These numbers are slightly skewed due to a landmark sale that will likely be one of the highest this year.
At this time last year, sales were nearly doubled with 14 homes sold and 1 home in escrow. The average amount of days on the market was slightly higher at 117 with a comparable average listing price at $13,205,757 and average sale price at $7,859,965.
Malibu Landside Sales
On the Malibu Landside, 19 homes have been sold and 6 homes in escrow thus far. The average amount of days on the market was 134 with an average listing price at $7,550,978 and average sale price at $3,278,631.
At this time last year, sales were nearly doubled as well with 40 homes sold and 4 in escrow. The average days on the market was 168 with an average list price at $5,173,907 and average sale price $2,815,772.
The MGG Take
Given the Woolsey Fire and its devastation on many Malibu homes, sales have been down in the short-term, but we don’t see this being a permanent market. In March alone, we saw a drastic increase of interest in both our own listings and from our buying clients. With Summer approaching fast, we are expecting a strong market in both leases and sales to return. That said, the start of the year is a good indicator that the busy season in Malibu will not supersede previous years and serious buyers are more scarce.
On the beach side of Malibu, competition among listings is fierce and presenting a home at it’s absolute best, along with a compelling price, will be key. Individuals who have been waiting for a slower market to make their purchase may recognize this as the moment. From our own operations, we are seeing early signs of this.
On the landside of Malibu, buyer interest has been significant towards the end of Q1. Even more so than off of the beach, pricing here is critical. Using a comparative analysis and creating the right strategy will provide options to sellers based on the property and their own timeline. That said, listings off the beach typically take longer to sell. With low sales early on, these listings may experience an even longer listing period if they are not sold within the initial wave of interst.
Our Spring Recommendations
A slow market does not mean there are not options. Listing a property and making it stand above the others with stunning marketing or buying a home from a dated inventory can both be very advantageous positions.
The land market in Malibu has been a silver lining for many individuals affected by the fires. Buyers are willing to pay a substantial premium for these lots. For those who are moving on, listing the land early will be of tremendous value.
Renewed construction underway shows long-term opportunity and growth as land offers a refreshed mind and new opportunity for building a personalized estate. Although prices dropped in 2018, Malibu prices haven’t gone down two years in a row since 1995. For new builds, the value will be outstanding if done well.
Malibu offers more potential for growth than ever before and we’re excited to see what’s in store for the upcoming quarter!
All information is current as of April 4, 2019 and pulled directly from the Multiple Listing Service.
Looking to sell or buy in Malibu? Contact us for more information!
Call 310.230.5771 or email russellandtony@compass.com
