2020 will go down in history as a year of uncertainty. While it would be easy to recap the global pandemic, erratic stock markets, and political upheaval of 2020, we will leave that to the news.

Instead, we will be analyzing the 2020 Malibu real estate market. Our local market outperformed years prior and demand remains at an all-time high both on and off of the beach.

The Mark & Grether Group’s 2020 Year in Review

We are thrilled to have had our best year yet closing over $75 million in real estate transactions! This includes:

• 38 single-family homes, condominiums, income properties, land lots, and burnout lots sold
• 42 seasonal and long term leases ranging from $3,250/month to $125,000/month
• 101 clients served

Our success is not only measured in numbers. We are proud members of the Malibu community and look forward to being a trusted real estate resource from the coast to the canyons in 2021!

Malibu Market Overview

To demonstrate the unprecedented demand we saw over the past year, we pulled numbers from 2019 and compared them to 2020. Here is what we found:

• In all of Malibu, the combined amount of single-family home sales, condominium sales, mobile home sales, land sales, income property sales, and properties leased in 2019 was 653. In 2020, the total was 854. This is a 30% increase in transaction volume.
• In 2019, there were 131 single-family home sales in all of Malibu. In 2020, there were 257. This is a 96% increase in transaction volume.
• 60 condominiums sold in Malibu in 2019. In 2020, there were 81 sales, a 35% increase.
• Mobile home sales in 2019 totaled at 34. In 2020, there were 36 sold in the Point Dume Club and Paradise Cove. This is a slight 5% increase.
• There were 41 land lots sold in Malibu during 2019. In 2020, there was a total of 74 sales for an 80% increase in transaction volume.
• Last but not least, there were 386 closed leases in 2019. In 2020, there were 405 closed leases. This is a slight increase of approximately 5%.

In short, sales nearly doubled. Single-family homes were the clear winner, while land and condominiums also saw a very healthy increase in closed sales. Mobile homes and leases both exceeded their performance from 2019.

Malibu is full of unique communities, beaches, and offerings. To truly look at 2020, we’ll need to dive into the specifics of each property type. We’ll also identify a few communities that saw the most growth in 2020 and what to look for in 2021.

Single-Family Home Sales

The Coronavirus pandemic sparked a nationwide exodus from cities. The desire for extra indoor/outdoor space, privacy, and natural beauty came into focus like never before. Being the furthest removed sector of L.A. County and one of the most beautiful coastlines in the country, Malibu became the clear choice for countless city dwellers.

Because of this, Malibu saw an influx of buyers at all price points on and off the beach. Here are the numbers per the Multiple Listing Service:

Malibu Beach

• Total sales: 76 | 36 sales in 2019
• Average days on market: 78 | 97 in 2019
• Average list price: $9,484,191 | $13,139,400 in 2019
• Average sold price: $8,489,944 | $11,512,114 in 2019
• Average sold price per square foot: $2,841.64 | $3,095.21 in 2019

Malibu Landside

• Total sales: 181 | 95 in 2019
• Average days on market: 73 | 103 in 2019
• Average list price: $4,449,198 | $3,452,642 in 2019
• Average sold price: $4,068,935 | $3,098,578 in 2019
• Average sold price per square foot: $1,141.47 | $953.01 in 2019

Best Performing Neighborhoods

On the beach, Broad Beach was the star of 2020. In recent years, the area has held incredible value compared to similar communities such as Malibu Road and Carbon Beach. in 2020, transactions here doubled, as did sale prices. 10 properties were sold on Broad Beach at an average of $11,940,000 (in 2019, the average sale was below $7 million). Look for more big sales here in 2021.

Meanwhile on Malibu’s landside, the clear star of 2020 is Point Dume. This ranch-like community has prospered due to it’s laid back lifestyle, large lot sizes, and private beach rights. Transaction volume nearly doubled and sales prices were up by over $1 million to $8,474,376. Expect more demand here as the listing inventory has dwindled.

Condominium Sales

As we mentioned, condominium sales were up 35% across all of Malibu in 2020. Although both areas outperformed 2019 across the board, Malibu beach condominiums saw a healthier increase in sales prices while the landside saw a better increase in transaction numbers. Here are the specific numbers on and off of the beach:

Malibu Beach

• Total sales: 20 | 18 in 2019
• Average days on market: 108 | 59 in 2019
• Average list price: $1,977,175 | $1,432,275 in 2019
• Average sold price: $1,755,273 | $1,338,011 in 2019
• Average sold price per square foot: $1,448.54 | $1,350.67 in 2019

Malibu Landside

• Total sales: 61 | 41 in 2019
• Average days on market: 57 | 95 in 2019
• Average list price: $1,186,242 | $1,139,898 in 2019
• Average sold price: $1,128,923 | $1,072,110 in 2019
• Average sold price per square foot: $821.10 | $699.53 in 2019

Manufactured Homes

The communities of Paradise Cove and Point Dume Club seem to become more desirable every year, and despite the ever-rising space rent, they remain as some of Malibu’s most affordable properties. Here is a market recap for 2020:

• Total sales: 36 | 34 in 2019
• Average days on market: 50 | 131 in 2019
• Average list price: $1,330,639 | $1,248,265 in 2019
• Average sold price: $1,217,458 | $1,172,456 in 2019
• Average sold price per square foot: $778.67 | $783.38 in 2019

Inventory in both parks is low and demand remains high, as evidenced by rising pricing and much quicker sales in 2020. Both areas will continue to shine in 2021.

Land Lots & Burnouts

A surprise of 2020 was the land market. While the immediate need for relocation was seen primarily in the single-family market, long term plans to build in Malibu were also expedited. This, combined with very high demand for burnout lots, created an 80% increase in transaction volume. Here are the numbers including raw land and burnout lots:

• Total sales: 74 | 41 in 2019
• Average days on market: 109 | 147 in 2019
• Average list price: $1,559,668 | $1,434,010 in 2019
• Average sold price: $1,307,875 | $1,174,037 in 2019

Burnout Lot Market

Though the expedited permit rights were just extended until November 8th, 2021, 2020 appeared to be the last opportunity for Woolsey burnouts. This shows in the high demand and very low inventory we are beginning the year with. Though often these lots trade off-market, we have carefully tracked burnout lots and have the approximate figures on 2020:

• Total sales: 30
• Average days on market: 77
• Average list price: $1,139,783
• Average sold price: $1,139,783

With the permit rights extended, expect more properties to become available this year and to be snatched up quickly. To get on our burnout watch list, please get in touch at russellandtony@compass.com

Leases

Finally, the leases. With nearly all global vacations canceled, Malibu’s short term lease market was at its most competitive state this summer. Here is an overview of our local lease markets:

Malibu Beach

• Total leases: 150 | 117 in 2019
• Average days on market: 56 | 143 in 2019
• Average list price: $96,349/mo |  $23,621/mo in 2019
• Average leased price: $35,996/mo | $23,003/mo in 2019

Malibu Landside

• Total leases: 255 | 269 in 2019
• Average days on market: 48 | 65 in 2019
• Average list price: $10,590/mo | $11,696/mo in 2019
• Average leased price: $11,163/mo | $10,823/mo in 2019

Beach prices skyrocketed along with demand. While there were fewer leases on Malibu’s landside than last year, the overall lease prices rose and the average days on market showed a moderate decrease. Whether it be for one month or for a year, people will always want to lease in Malibu.

Look out for both of these markets to remain strong in 2021, with a possibly stronger beach lease market as more owners capitalize on a second summer with travel restrictions.

2021 Market Predictions

Based on 2020 and the start of 2021, here is The Mark & Grether Group’s forecast for Malibu Real estate in 2021:

• The Malibu seller’s market will continue as buyers continue to leave cities and head for less crowded regions. The ongoing pandemic and “work from home” movement will continue to be driving forces in relocation.

That said, this market will not last. According to Tony Mark, ” the seller’s market begins to level but still very strong. We expect the market will remain strong through spring and summer, but if you plan to sell in the next 1-3 years you would be wise to take advantage of this extraordinary market now.”

• Prices will remain competitive this spring and summer. Buyers are more likely to find themselves in bidding wars.
• Broad Beach, Point Dume, and other neighborhoods will continue to have low inventory and listings will trade prior to listing or very soon thereafter. Having the right realtor to monitor and locate these listings will be essential for the discerning buyer.
• For sellers, the increased activity means that presenting the home at its best is more essential than ever to achieve the highest price. Call us to learn more about our full-service, comprehensive approach to marketing and selling real estate in Malibu.

As we saw last year, all of this could change if there is another nationwide shutdown or new economic uncertainty. While 2020 is behind us, the lingering effects are ongoing.

For a no-obligation consultation and property analysis, please get in touch with our team! We are proud to be a local resource from the coast to the canyons.

Wishing you a healthy and prosperous 2021!

The Mark & Grether Group | Tony Mark & Russell Grether | 310.230.5771 | russellandtony@compass.com