2019 Quarterly Update: April-June

It’s officially Summer in Malibu which has seasonally and historically been the busiest time of year in the Real Estate world. July marks the end of June gloom, the beginning of Malibu’s infamous beach traffic, and the start of the 3rd quarter of 2019. During Q1, we saw the local market begin to bounce back from the slow start we experienced earlier this year. That said, the local numbers during Q2 in Malibu, as well in all Los Angeles’ luxury markets, are still well below the average in years passed.

Los Angeles Stats

As of June 30, 2019 in Los Angeles:

• There have been 230 sales of $5+ million homes in 2019, versus 273 at this time in 2018, down 16%.
• 62 closed sales of $10+ million homes, versus 86 at this time last year, down 62%. 
• 14 were $20+ million homes this year, versus 29 at this time last year, down 52%. 
• 6 sales were $30+ million homes this year, versus 13 at this time last year, down 54%.
• 2 sales were $40+ million homes this year, versus 5 at this time last year, down 67%.

These numbers are daunting. However, there is some good news! 

• There were 67 pending sales of $5+ million and 19 of these are $10+ million, 6 are $20+ million and there were two pending sales of $70+ million.
• The buyers of the 14 sales of $20+ million homes this year are mostly American. 9 to be exact, or 64%.  The other buyers are from Qatar, Bulgaria, China, England, and Saudi Arabia.
• The areas of these 14 sales are 6 in Bel Air, 5 in Beverly Hills and 1 each in BHPO, Brentwood, and Malibu.

Malibu Beach Sales

On the Malibu Beachside at the end of Q2, sales have been low with a mere 17 homes sold. The average amount of days on the market was 123 with an average listing price at $13,268,988 and average sale price at $8,052,205.

At this time last year, there was significantly more sales with 30 homes sold. The average amount of days on the market was longer at 138 with a higher average listing price at $13,334,833 and higher average sale price at $9,586,150.

Malibu Landside Sales

On the Malibu Landside, 39 homes have sold and 7 homes are in escrow at the end of Q2. The average amount of days on the market was 119 with an average listing price at $5,816,565 and a average sale price at $3,025,800.

At this time last year, sales were effectively doubled with 83 homes sold and 7 in escrow. The average days on the market was lower at 116 with a lower average list price at $5,498,602 and higher average sale price $3,430,375.

The MGG Take

Entering into historically the best season of the year for selling, expectations are high in the local housing market. With the Woolsey Fire wiping out nearly 18% of homes in Malibu and a very slow start to the year, the market inventory is at an all-time low. Although this may seem like a negative, it is not necessarily a bad thing. Less inventory means less competition for those serious about selling their homes. Buyers must also act more quickly when locating and purchasing the property.

This is the best market yet of 2019 to list your home for sale, but our advice is not to do so hastily. The best homes are selling quicker, which is why preparation is key. Compass Concierge will front the cost of home improvements at 0% interest so that sellers can drive up the price, sell faster, and not worry about the cost! You can read all about that exclusive program here.

On the beach in Malibu, leasing season is in full swing as July and August are the prime Summer months in Malibu. This is the perfect time to list your home for lease as there is an influx of potential renters looking at this time for a Summer retreat. After a particularly dense June gloom extending into July, we are anticipating a late Summer lease boom. On another note, those displaced by the fires are still in search of long term leases and we have helped countless tenants and landlords alike in these contracts. If you are interested in leasing your home or renting one, contact our team!

Whatever you do, enjoy Summer in Malibu.

All information is current as of June 30 (end of Q2), 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