2022 was another incredible year for Malibu real estate and our team. Though it did not surpass 2021, perhaps Malibu’s best real estate market ever, it was still a very good year

The Mark & Grether Group’s 2022 Year in Review

2021 is hard to beat, but we got close. We are thrilled to have closed over $177 million in real estate transactions during 2022! This includes:

• 32 single-family homes, condominiums, income properties, land lots, and burnout lots sold from $450,000 to $22 million.
• 27 seasonal and long-term leases ranging from $4,900/month to $200,000/month
• 76+ sellers, buyers, landlords, and tenants represented.
• $100 million sold and leased on Broad Beach.

Thank you to our clients, referral partners, friends, and families for another incredible year. Our philosophy is that each client deserves personalized attention, made evident in transactions ranging from $4,900/mo to $22 million. Nearly $151 million of our 2021 sales were in Malibu; however, we were proud to close transitions in Los Angeles, Brentwood, Topanga, the Valley, Camarillo, Ventura, and beyond!

Get in touch to learn more about our unique approach to real estate and how we can help you make moves in 2023.

Malibu Market Overview

As local Malibu real estate brokers, we check the MLS every day for new listings, price adjustments, escrows, and recent sales which set the most current comps for the future. At the end of every year, we take all of the sales and compare them to the previous year.

This does not account for off-market sales, however, it does paint an accurate picture of what the market is doing and the course we are on for the upcoming year.

• In Malibu, the total sales volume for the year 2022 was $1.876 billion. This is 15% down from 2021, where $2.186 billion of the property was traded during the year, not considering off-market properties.
• In 2022, there were 228 single-family homes sold in Malibu on and off of the beach. 2021 saw an all-time record of single-family homes sold: 360! (The previous record was 353).
• Public records show that Malibu’s highest sale of 2022 was a $100 million estate in Paradise Cove, sold to the founder of Entertainment Studios. Another property in Paradise Cove set the state record last year, closing at $171 million.

Malibu is full of completely different communities, beaches, and enclaves all offering something unique. Let’s get into the specifics of each property type.

Single-Family Home Sales

As made apparent by the overall statistics, 2021 will remain the best market in recent history; that said, 2022 was still quite good, historically speaking.

The average sale price for 2021 was $7.3 million (down from $8 million), though the averages in Malibu do skew due to the larger numbers. There were 11 sales at over $20 million, and 46 homes sold above $10 million, both categories being about half of the numbers from 2021, although many large transactions are done off-market.

There were no sales under $1 million last year, though several sold just above (Pacaso shares not included… More on that later). Here is the breakdown for the beach and landside from 2022:

Malibu Beach

• Total sales: 61 (97 in 2021)
• Average sold price: $14.3 million ($15.5 million in 2021)
• Average days on market: 85 (80 in 2021)
• Total volume sold in 2022: $876 million ($1.53 billion in 2021)

Malibu Landside

• Total sales: 167 (263 in 2021)
• Average sold price: $4.7 million ($5 million in 2021)
• Average days on market: 72 (76 days in 2021)
• Total volume sold in 2022: $795 million ($1.32 billion in 2021)

The numbers show a dramatic drop-off, but the driving force behind this isn’t as it seems. Buyer interest remained strong in 2022, as evidenced by very little change in days on market. The difference was inventory. With a record number of homes sold in the previous year, inventory is at an all-time low. Prices have gone done as the market changed, but they have not dropped off as some buyers would like to believe.

Best Performing Neighborhoods

Broad Beach continued with its meteoric rise that began in 2020. In recent years, the area has held incredible value compared to similar communities such as Malibu Road and Carbon Beach. Last year, the 10 traceable sales of 2021 averaged an incredible $17.6 million. In 2022, 8 sales took place with an average price of $16.1 million. Half of these sales were off-market, and our team represented 75% of these transactions including the year’s highest sale on Broad Beach, $22 million. We are thrilled to have another great year on Broad Beach with over $100 million sold and leased.

Meanwhile on Malibu’s landside, 2022 had a few stars. The first is the Marisol development on Ellice street above County Line Beach, which represents some of the most cutting-edge and magnificent new construction in Malibu. Two of these homes sold in 2022 at a whopping $26.9 and $24.5 million, with another closing just after the new year at $16 million. Honorable mentions are Point Dume, Malibu Park, and Carbon Canyon which, among a few other large sales, set a new landside record with a $38 million sales price.

Condominium Sales

Malibu’s condominium market has become incredibly competitive in the past two years since the post-covid real estate boom, with low inventory and many active buyers.

• Total sales: 51 (83 in 2021)
• Average days on market: 27 (52 in 2021)
• Average sale price: $1.69 million, $1.32 million median ($1.54 million average, $1.23 million median in 2021)
• Total volume sold in 2022: $86 million ($128 million in 2021)

The short days on market (cut in half!) and rising prices show just how many buyers are still looking for condos. With almost no inventory to start the year, this market will likely continue to stay strong and only be limited by the lack of availability.

Manufactured Homes

The communities of Paradise Cove and Point Dume Club have become some of Malibu’s hottest commodities in recent years. Inventory is at record lows while prices continue to rise across the board. Here is a market recap for 2022:

• Total sales: 16 – 9 in Point Dume Club, 7 in Paradise Cove (24 in 2021)
• Average days on market: 50 (42 in 2021)
• Average sold price: $1.86 million ($1.52 million in 2021)
• Total volume sold: $29.9 million ($43 million in 2021)

Inventory in both parks are at an all-time low, with just a few properties available in each.

Land Lots & Burnouts

The market for land in Malibu has remained fairly steady over the past few years, but 2022 saw things cooling slightly. The Woolsey Fire burnout market has mostly faded, with just a handful left still for sale. Most have already traded or decided to rebuild. Malibu’s regulatory environment continues to provide a barrier to the inexperienced land buyer, and speculation on the turning market has some investors waiting in the wings instead of buying.

That said, the average sale price increased due to some very large transactions and the total volume is close to that of 2021, Malibu’s best real estate market ever. Here are the numbers for 2022:

• Total sales: 63 (78 in 2021)
• Average days on market: 138 (116 in 2021)
• Average sold price: $1.4 million ($1.2 million in 2021)
• Total volume sold: $88 million ($99 million in 2021)

Leases

Finally, the leases. Lucky for landlords, there are always tenants who want to live in Malibu, both for a month and a year. With international travel re-opened, the seasonal beach lease market has cooled from its fever pitch in 2020, and the results are fairly consistent with 2021. The landside remained particularly strong, putting up higher numbers and nearly as many transactions as last year. Working from home and the desire for wide open spaces make Malibu a perfect fit for those looking to escape the city.

Malibu Beach

• Total leases: 78 (106 in 2021)
• Average days on market: 87 (89 in 2021)
• Average leased price: $32,829/mo ($32,817/mo in 2021)

Malibu Landside

• Total leases: 223 (234 in 2021)
• Average days on market: 55 (57 2021)
• Average list price: $15,352/mo ($13,628/mo in 2021)

2023 Market Predictions & Trends

Here is The Mark & Grether Group’s forecast for Malibu real estate in 2023:

• Inventory levels are at an all-time low, however, sellers will continue to have less power with rising interest rates and general economic uncertainty. Pricing is now more important than ever, and properties that miss the mark will languish. The ultra-high-end market is less affected, but buyers are generally more skeptical. It is predicted that the fed will stop increasing rates in 2023, which could re-invigorate the market.
• Underpriced properties in well-performing markets will continue to sell at or above their asking prices with very low days on market, as seen at our recent sale of 24551 Piuma Road which closed well over asking with 13 offers received. This strategy is effective at the lower end where there are more active buyers, but much less so as prices are higher.
• If the economy stabilizes and rate hikes cease, Spring and Summer will bring a newly invigorated wave of buyers who have been on the sidelines. Until then, inventory may slowly catch up, though it will be years before the market “normalizes.”
• Alternative housing options to purchasing a home continue to trend upward. Pacaso, which is buying homes in Malibu and selling 1/8 usage shares (to the detriment of some neighborhoods) seems to be here to stay. Mobile home demand remains very high with almost no inventory, and well-priced land also provides a good alternative to those who may have less buying power than in previous years.
• For buyers to have access to additional off-market or coming soon inventory, they will need to be plugged in with local agents who have the insights and connections needed.
• Sellers will need to work with the right agents who will present and market their property most effectively to bring as many offers and the best price possible. Active marketing to achieve maximum exposure is now more important than ever, and picking the right agent is everything in 2023.

The Mark & Grether Group is proud to be Malibu’s #1 boutique real estate team by volume sold for three years running! With $1.2 billion in career sales and over $177 million sold and leased in 2022, we are looking forward to another year of successful transactions. It is our honor to be a trusted, local resource in Malibu working with sellers, buyers, landlords, and tenants at all price points.

If you are considering making a move, don’t wait. For a no-obligation consultation and property analysis, please get in touch with our team!

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