Malibu Road Real Estate Market Prices, Trends and Forecast 2024

Malibu Road Real Estate Market Prices, Trends and Forecast 2024

  • Mark Gruskin
  • 04/11/24

Because Malibu Road is adjacent to Malibu Bluffs Park, residents enjoy an added layer of privacy, courtesy of the majestic Malibu Bluffs that stand as a natural barrier to the outside world. Just a stone's throw from the bustling highway, this prestigious locale ensures seamless access while preserving the tranquility that residents cherish. Its proximity to downtown Malibu brings the best of upscale dining, shopping, and entertainment within easy reach.

The real estate here is nothing short of spectacular, with beachfront mansions dotting the two-and-a-half miles of walkable beachfront, each boasting breathtaking views of the Queen's Necklace. This unique blend of accessibility, privacy, and natural beauty makes Malibu Road a coveted destination.

Malibu's market transformation

Malibu is transitioning from the heated dynamics of last year's seller's market into a buyer's market. In a seller's market, demand outstrips supply; homes sell quickly, often above asking price, as buyers compete fiercely for limited inventory. Contrastingly, a buyer's market unfolds when the tables turn, offering a greater selection of homes than there are buyers.

The shift means prices may stabilize or even dip, and buyers can afford to be choosier, negotiate more aggressively, and enjoy a more deliberate decision-making process. For sellers, this market demands strategic pricing and patience, as the quick sales of yesterday's market give way to a more balanced playing field.

A buyer's market in focus

The median sold price for homes in Malibu is $3,305,000, translating to $1,385 per square foot, a figure that speaks volumes about Malibu's premium quality and desirable location. However, this represents a significant adjustment, with prices down 24.5% compared to February 2023, underscoring the current buyer-friendly climate. When juxtaposed with the U.S. median home price of $366,733, the exclusivity and prestige of Malibu are further highlighted.

The sale dynamics reveal that 18% of homes fetched more than their asking price, indicating that, despite the overall trend, select properties continue to spark bidding wars due to their unique appeal or location. Conversely, a substantial 82% of homes sold for under asking price, providing ample negotiation leverage for buyers and signaling a more calculated, buyer-empowered market landscape.

A wider lens

Exploring the broader canvas of the real estate market surrounding Malibu Road reveals a diverse and dynamic landscape, with neighboring areas experiencing varying degrees of market shifts. In February 2024, Agoura Hills-Malibu reported a median sold price of $1,550,000, marking a modest increase of 3.3% since February 2023. This uptick suggests a steady demand and resilience in the area.

Pacific Palisades, another coveted locale, presented a median sold price of $3,329,500 in February 2024, experiencing a decrease of 14.6% from the previous year. Despite the downturn, Pacific Palisades remains a high-value market, closely aligned with Malibu Road's premium real estate.

In contrast, Escondido showcased a markedly different scenario, with a median sold price of $807,875, climbing 11.6% since February 2023. This significant appreciation underscores Escondido's seller's market, diverging from the buyer-friendly conditions in Malibu and Pacific Palisades.

The ebb and flow of housing supply

Malibu's real estate dynamics, particularly in terms of housing supply and demand, have shown interesting trends through the early months of 2024. In January, the market listed 208 homes for sale, a figure that slightly increased to 226 homes by February. This gradual rise in inventory indicates a growing opportunity for buyers. The number of homes sold presents a steady, albeit slow, pace, with 16 homes finding new owners in January and a marginal increase to 17 homes sold in February.

A notable shift can be observed when comparing the average time on the market year over year. In February 2023, homes typically spent 64 days listed before selling. This duration extended considerably by February 2024, with homes averaging 109 days on the market — a clear sign of the shifting momentum towards a buyer's market. Moreover, a significant 53% of the homes sold during this period took over 90 days to sell, further emphasizing the increased negotiation power and options available to buyers.

A promising horizon for real estate investors

In Malibu, the average rent for a quaint, one-bedroom home encompassing 566 square feet is $3,391, reflecting a modest increase from the previous year. This upward trend in rent, albeit slight, signals a robust demand for rental properties in the area. The scenario becomes even more attractive with two-bedroom homes sprawling across 1,021 square feet, commanding an average rent of $4,286.

The majority of homes, 76.5%, in Malibu are owner-occupied, a statistic that not only reflects the community's stability and desirability but also suggests a lower competition for rental properties. For potential investors, this environment presents a fertile ground for securing properties that can attract high rental yields, offering a tangible pathway to building wealth in the serene and sought-after enclave.

Is now the right time to invest?

With mortgage rates anticipated to adjust only modestly as inflation stabilizes, the market presents a relatively stable landscape for financial planning. This steady outlook suggests that neither buyers nor sellers should expect dramatic shifts in their borrowing costs in the near future, allowing for more predictable investment strategies.

The resilience and long-term appreciation of home values offer additional encouragement. Historically, even during periods of national downturns, such as the notable dip in 2008 and 2009, recovery has been swift and robust, with values not only rebounding within a year but continuing on an upward trajectory. Since 1965, national home values have consistently appreciated, doubling every decade until 2000. Though the pace moderated slightly after that, with the next doubling period extending to 2017, the overarching trend underscores a strong and persistent growth in property values.

A beacon of opportunity

Malibu Road's real estate, with its picturesque beachfront mansions and coveted views, stands as a paragon of luxury living and investment potential. With home values showing resilience and long-term appreciation, alongside a market that is adjusting to more favorable conditions for buyers, now emerges as an opportune moment for investing or divesting in this premium locale.

Navigating Malibu Road with expertise

Mark S. Gruskin is a seasoned real estate attorney, agent, and managing partner of Westside Estate Agency's Malibu Office. His expertise, rooted in real estate's legal and commercial realms, positions him to navigate any market condition. For those aiming to buy or sell in Malibu Road, partnering with a professional like Mark S. Gruskin ensures the best possible deal, reflecting the true value and potential of this exquisite community.

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My goal is to give every client insightful and intelligent advice, get them the best value possible, and serve professionally and with the utmost integrity. If Malibu is where you live or would like to live, then give me a call and let’s talk real estate.

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