Malibu Real Estate Market Continues Explosive Growth

Malibu Real Estate Market Continues Explosive Growth

From the days of agricultural ranching to Surfing USA and today’s growing tech industry, one thing remains constant. Buyers consistently clamor over beachfront Malibu real estate. Malibu’s luxury home market offers everything from oceanfront cottages to palatial estates with stunning views of the Pacific.

SoCal Homes Sell Regardless of Higher Prices

Prices have been going up for six years. Yes, the median home price in Southern California continues to rise. Home prices are setting records. The median price jumped 8.4 percent year-over-year in March 2018. Low inventory causes bidding wars that drive prices up. Residents fight development along the California beaches. This creates greater demand for existing properties.

How Does the Malibu Real Estate Market Compare?

Luxury sales of Malibu real estate spiked in relation to the it overall Los Angeles home market. MansionGlobal.com (04/24/18) underscores the “ultra exclusive Malibu Beach neighborhood, aligned with the multi-million-dollar homes of celebrities and business tycoons.” The publication noted 24 sales during January, February, and March 2018 – up from 6 year-over-year.

Let’s look at Malibu. Money is no issue for wealthy buyers who just want an idyllic setting and their homes or neighborhoods of dreams. Malibu beachfront estate is selling for $110 million – the most expensive home ever sold in Los Angeles County. Another Malibu sale referred to by Mansion Global is a Carbon Beach estate that sold for $85 million.

Certainly, prices like that drive median home prices up! This year, the median price in Malibu was $2.45 million and in Malibu Beach itself, the median price weighed in at $4.75 million. Prices may all even out in the wash though. The average Malibu home sold ended up absorbing a 17.5 percent price cut.

For the Long Haul

Price tags may be inflated. The rate of price hikes may not last long, especially with rising interest rates. So far in 2018, the average 30-Year fixed mortgage went from approximately 4 percent to approximately 4.5 percent. Pretty soon, sellers will notice the need to lower prices to accommodate higher costs for buyers. In Malibu, lower priced luxury properties sell very quickly.

Real Estate Agents – Southern California Homes for Sale

For information about Malibu real estate and luxury properties for sale in Southern California, please call Bob Cumming of Keystone Group Properties at (310) 496-8122.