It has been a year and a half since the Woolsey Fire swept through Malibu. The fire was one of the areas most destructive events. It damaged at least 670 structures and damaged over 400 single-family homes.
In the wake of this tragedy, Malibu has shown incredible resilience. The charred debris have mostly been cleared and the community has banded together in an effort to rebuild. Unfortunately, there is still a long way to go for many victims.
Rebuilding, Slowly
Victims of the Woolsey Fire are granted rights to an expedited permitting process in which they can replace the lost structure, plus a ten percent size increase. Style, layout, and design can all be re-imagined. To a handful of owners, the opportunity to remodel and add value is a welcomed upside from the tragedy. However, for many, it is a painful and excruciating process.
After one year and 6 months, here is the progress that has been made:
- 240 single-family homes have been approved
- 100 permits have been issued
- 2 single-family homes have been completed
- 12 multi-family residences have been approved, 0 have been completed
Stats from the City of Malibu Rebuild page on May 14th, 2020.
Rebuilding Meets Coronavirus
In late March, Los Angeles County and much of the world went into lockdown. “Safer at home” measures to flatten the curve of the pandemic were put into place. City hall closed, as well as offices around the country.
For those in the permitting process, this has been difficult. The city has done everything in its power to keep projects moving forward, however, much of the work is done in person at the counter in City Hall. Estimates on the resulting delays for Woolsey victims have not yet been released.
For the 100 projects that have received approval, there is good news. Since construction was deemed an “essential service,” the work at homes in this phase can continue as normal. This has not come without backlash from many within the Malibu community, citing the daily commute of countless workers from other areas.
Safer at home measures are now expected to last through July, a frustrating prospect for those waiting to pull their own permits.
The economic halt also brings up significant concerns. Many Woolsey Fire victims were underinsured and the loss of income during the pandemic could put rebuilding out of reach for some.
Burnout Lots, Going and Gone
Since shortly after the fires, these “burnout lots” have been coming onto the market at prices from $300,000 to upwards of $4 million. Inventory in Malibu Park and Point Dume, two of the hardest-hit and premium areas, have been nearly bought up. Lots in other areas, such as the canyons, have taken longer. They are still selling much quicker and more frequently than raw land.
Here is an overview of the current burnout inventory in Malibu:
- 23 active listings at an average of $1.483 million
- 2 pending sales, both canyon lots averaging $717,000
- 26 sold burnout lots at an average of $1.258 million
- Of the sold lots, the average list price was $1.537 million
Options for Burnout Owners
As residents of Malibu, we would love nothing more than to see every victim of the Woolsey Fire rebuild and stay within the community. However, the unfortunate reality is that for some, the most sensible course of action is to sell and move on. With the added pressure of an economic shutdown, selling these lots may be the best viable option for those with less liquid situations.
For sellers, it is a great time to list a burnout. Over 50% of listed burnout lots have since been sold at premiums far beyond that of raw land. There is still pent up demand, from the more affordable canyon lots to the prime locations in Malibu Park and Point Dume.
It is also a great time for buyers. Seller motivation levels cover a wide range, but the pandemic and economic shutdown certainly add pressure to situations for those holding on. With a list to sell price ratio of approximately 81%, savvy buyers are making deals on these highly valuable properties.
Talk to Experts
As Malibu locals and land specialists, we have assisted both buyers and sellers in countless scenarios. Our team has been involved in nearly 20% of all successful burnout transactions representing the buyer or seller.
Please contact us with any questions! Our team is available to talk, from confidential consultations to simple Q & A. Please contact 310.230.5771 or russellandtony@compass.com to get in touch.
View ourweekly updated fire statistics, related blogs, and burnout listings here.
