As I stated in my previous article, the real estate market is evolving and the number one issue is price. The real estate market overall shows a price correction taking place across the US and globally.
Here is a quick look at Malibu and Malibu Beach data:
Although inventory is low, price corrections are still occurring. The good news is jobs and the economy are strong which is producing a more discerning buyer, one who is financially qualified and ready to wait for the right property to hit the market that suits their needs.
The Short Term Rental Market regulations and November’s ballot initiatives like Prop 5 are being considered heavily by potential buyers who have the resources to wait for new inventory to hit the market. This is another reason why pricing your property correctly will determine how fast your property will sell, keeping your “DOM” (Day On Market”) to a minimum. Making sure your agent stays on top of current market trends and ahead of the correction is a key strategy to selling your property quickly in the current market. in order to stay ahead of the current trends voters need to secure a YES on Prop 5 and a NO on Prop 10 this Nov. to help keep the real estate market moving forward.
The following data clearly demonstrates a correction taking place in Malibu and Malibu Beach as of August 13th:
Single Family Residents for both sides of PCH currently has 273 active listings and an average of 123 Days On Market.
The low price is $1,095,000.00 and high is $85,000,000.00
The average price per square foot is $4258. leaving a total volume of $1,801,489,877.00 of active listing for Single Family Residents in all of Malibu area 32 and 33 per the MLS.
Out of the 273 listings, 75 (or 27%) have seen a price reduction.
Out of the 75 price reductions 63 of them are below the listing price of 10 Mil.
Leaving 12 properties above 10 Mil.
Only 3 listings or 1% with price increases.
Condominiums for both beach and land side show about the same kind of correction as well as an increase in inventory.
There are 45 active listings with an average Days of Market of 91 and I am monitoring the DOM closely to see if the time on the market reduces.
The lowest price is $625,000.00 and the highest is $9,449,000.00 giving the average square foott of $1570.. The total volume in inventory is $74,185,500.00
From the 45 active listings, there were 13 ( or 29%) with price reductions.
Compared to 2 listings or 4% with price increases.
Of the 2 price increases, one has been on the market of 156 days and the other over 360 days.
The current market trends leave buyers and sellers with a lot to think about. Once again, I will leave you to ponder the most important aspect of selling your property. Price. It is the key to moving on to the next chapter of your life. If you, or someone you know, is looking for a qualified agent knowledgeable about market trends and committed to strategy that will reduce your days on the market, ( and selling your property as quickly as possible), please reach out to me. I am happy to answer any questions you have.