The Re-Opening of PCH
The reopening of PCH is poised to improve the Malibu real estate market, which has faced significant headwinds due to recent wildfires and road closures.Current Market Landscape
In early 2025, Malibu's real estate activity experienced a major slowdown. February saw only 2 inland sales compared to 11 the previous year, marking an 81.82% decline. Beachfront sales also dipped, with just 1 closing in February 2025 versus 4 in 2024.
These declines are in part attributed to accessibility issues stemming from PCH closures, which hindered property showings and deterred potential buyers from coming out to Malibu. Buyers coming from the Westside of LA were facing two hours plus bumper-to-bumper drives just to get into Malibu and begin their house hunting searches.
Additionally, inland inventory rose by approximately 22%, indicating that more sellers were entering the market amid decreased buyer activity. Whereas beachfront listings dropped by about 34%, likely due to fire damage destroying or significantly affecting many coastal properties.
These declines are in part attributed to accessibility issues stemming from PCH closures, which hindered property showings and deterred potential buyers from coming out to Malibu. Buyers coming from the Westside of LA were facing two hours plus bumper-to-bumper drives just to get into Malibu and begin their house hunting searches.
Additionally, inland inventory rose by approximately 22%, indicating that more sellers were entering the market amid decreased buyer activity. Whereas beachfront listings dropped by about 34%, likely due to fire damage destroying or significantly affecting many coastal properties.
Anticipated Impact of PCH Memorial Day Reopening
The restoration of full access via PCH beginning around Memorial Day is expected to revitalize buyer interest and facilitate easier access for property showings, potentially leading to increased sales. Whether the current market slowdown is primarily a result of logistical challenges versus an overall lack of demand or other challenges such as tariff concerns, higher interest rates, and lingering wildfire concerns remains to be seen.
But, as accessibility improves, the market may see a notable uptick in sales.
Furthermore, Malibu's exemption from LA’s Measure ULA mansion tax certainly enhances its appeal to high-end buyers investors and developers.
But, as accessibility improves, the market may see a notable uptick in sales.
Furthermore, Malibu's exemption from LA’s Measure ULA mansion tax certainly enhances its appeal to high-end buyers investors and developers.
Outlook
While the immediate effects of the PCH reopening may take time to materialize fully, the long-term prospects for Malibu's real estate market appear positive. Improved accessibility is likely to boost buyer confidence and demand, particularly in the luxury segment. However, the market's recovery will also depend on broader economic factors, such as interest rates and overall economic stability.
In summary, PCH reopening is anticipated to have a favorable impact on Malibu's real estate market and overall business climate (it certainly cannot hurt) by alleviating access issues, stimulating buyer activity, and enhancing the area's attractiveness to investors… who ultimately will return for the lifestyle and beauty Malibu has to offer.
In summary, PCH reopening is anticipated to have a favorable impact on Malibu's real estate market and overall business climate (it certainly cannot hurt) by alleviating access issues, stimulating buyer activity, and enhancing the area's attractiveness to investors… who ultimately will return for the lifestyle and beauty Malibu has to offer.
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