Myths About Malibu Real Estate

Myths About Malibu Real Estate

  • Mark Gruskin
  • 10/11/22

Perhaps you’re considering shopping for an incredible home in Malibu, such as Broad Beach real estate, and you’ve spoken with others to get an idea of what the process might be like. In a market like the one you’ll find in Malibu, for the right property things can get competitive, which can lead to rumors circulating. While they may have good intentions, some people will make claims about Malibu real estate that aren’t true or helpful.

For expert knowledge on the true state of the Malibu market, Mark Gruskin is the Realtor® you can trust. This article will combat some of the myths to give you a clearer picture of what it’s actually like to buy or sell a home in Malibu.

1. It’s impossible to find a home in this market

It’s easy to understand why so many people want to live in Malibu. However, don’t let the picturesque beaches, luxurious lifestyle, gorgeous weather, and proximity to Santa Monica and Los Angeles fool you into thinking that there’s no chance that you'll ever find any Point Dume houses for sale.

That said, the market does remain relatively tight in highly sought-after locales like this one, and homes typically command higher prices. However, according to the monthly market report by the California Association of Realtors, as of August 2022, the median price for a single-family home in Malibu was down 18.5% from a year ago. While it is true that finding the right home is competitive because active Malibu listings are also down 16.7% from last year, you can certainly find the perfect new home if you are patient and work with an expert real estate agent. That way, when you finally find a home you love, you’ll work with your agent to come up with the right strategy to stand out above the rest.

Some people will tell you that the market is headed towards a “real estate bubble,” specifically in high-demand areas of the country like the greater Los Angeles area. The concept plays out as houses come into greater demand, which drives up the sales price, but prices plummet as supply comes closer to meeting the demand. Buyers and sellers should remember that there are several other factors, such as the rising cost of living and overall economic landscape, that can impact the sales price of a home.

2. Only billionaires live in Malibu

Photo courtesy of Mark Gruskin

Certainly, several prominent high net worth individuals call the Malibu area home. However, many people who have never been in a movie or played a concert in front of a packed arena are welcomed into the Malibu community. For starters, many people are unaware that Malibu is also a college town. Pepperdine University sits on 830 acres overlooking the Pacific Ocean and the Pacific Coast Highway just outside of Malibu. The school has over 3,500 undergraduate students and nearly 400 full-time faculty members. Others find their way to Malibu, looking for a reprieve from the big-city hustle and bustle that is a necessary evil of living in the Los Angeles area.

3. All the homes are on the beach

Photo courtesy of Mark Gruskin

Many people dream of finding Broad Beach homes for sale and living their daily lives only a few steps from the sands of the Pacific Ocean.  And while there are certainly plenty of gorgeous beach homes located in the Malibu area, there are also plenty of single-family homes scattered throughout the Santa Monica Mountains as well. While these homes don’t provide direct beach access like a home near the water might, they often provide the best views of the Pacific Ocean and the surrounding mountain ranges. Furthermore, because some these homes are found in more remote or secluded areas, they allow you to enjoy greater privacy than if you lived right next to the beach.

4. It’s best to rent in a market this competitive

Because demand to purchase property is so high, you may find yourself wondering if your best option is to rent instead. While there are certain situations where renting is a wise choice, this doesn’t have to be the default option for every would-be Malibu buyer, especially if find the home you love.

A big question is how long you plan to live in the area. If you’re only going to be in Malibu for a year or so, perhaps renting is the wisest choice to make. However, if you’re interested in making Malibu your home for the foreseeable future, buying a home can be a strong investment. Over the longer haul as the market cycles and appreciates, your home will likely dramatically increase in value, and you could be in line for a big payday later on when you choose to sell.  Not to mention you won't have thrown thousands of dollars away in rent. 

For those not paying cash, the best way to determine what you can afford is to utilize an online mortgage calculator to estimate what your payments might be. From there, it’s wise to get pre-qualified for a loan before you begin seriously shopping for homes (and certainly before you make an offer on the home). This gives the seller peace of mind that you can afford to buy their property and that they won’t run into any hiccups with your loan during escrow. Typically, sellers prefer the surest bet when it comes to selling their home, and sellers won’t accept a deal if they aren’t fully convinced that the buyer can secure a loan to pay for the home in the first place.

Ready to get started?

Now that you know what’s true and what isn’t, hopefully you feel more prepared to dip your toes into the waters of the Malibu housing market. Before you do, it’s wise to partner with a local agent who can help you navigate through the niche markets of Malibu and de-mystify the unfamiliar and unexpected. For expert guidance as you search for gorgeous properties in the Malibu area, such as a Cliffside Dr. bluff property on Point Dume, the agent you want on your side is Mark Gruskin. Mark is a trusted local Realtor® with years of experience and several awards that speak to his credibility. He would love to partner with you as you sift through the sands of Broad Beach homes or Malibu Road homes or head off into the local neighborhoods of Malibu West homes or Big Rock homes for sale.  He looks forward to taking to you soon.

*Header photo courtesy of Mark Gruskin

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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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