If you plan to buy housing in Malibu, there is no better time than now. Since 2023, home prices have decreased by 19 percent, and even the current year shows a 2 percent decrease. Considering that Malibu, CA, is synonymous with beachfront living and luxurious, stunning landscape, it's no surprise there have been more homes sold in the area than ever.
With this sudden popularity in Malibu, what exactly are the current trends in the Malibu real estate market? What is the median sale price for the average home there? This article will offer insight into this area's housing status.
Current Sale Prices for Malibu Real Estate Market
According to Zillow, the average home in Malibu, Los Angeles County, is valued at around $3,383,602. This is much lower compared to the data from the previous year, but that doesn't mean there are fewer homes sold. In fact, these lower prices added even more to the popularity, as tens of homes are sold monthly.
That said, the price of a home often depends on the type of property purchased. The median price for smaller Malibu condos is usually around $1-2 million, whereas high-end condos can go as high as $50 million. While homes stay on the market longer, it offers plenty of opportunities for potential buyers to look through the listings.
The price decline led to more and more people choosing Malibu as the place to move into. As the population of the area increases, so will the sales trends, leading to more profitable properties.
Top Real Estate Market Trends
The Malibu housing market is seeing a lot of shifts nowadays, which likely explains the constant fluctuation of the market prices. Below are some trends that you might be interested in as someone working in Malibu real estate.
Switch Towards Sustainable Featured Properties
Eco-friendly housing has become quite popular in Malibu. Homebuyers are becoming more environmentally conscious, and in their attempts to lower energy bills, they are also seeking energy-friendly solutions. Water-saving systems and solar panels are among the things that most buyers are looking for, which means that a house equipped with these is likely to sell out much faster.
Popularity for Rental Properties
The rental market is thriving in Malibu, with most people looking to rent luxury condos rather than buy the property altogether. The exotic and beautiful landscape of the city also makes it a year-round destination for those vacationing in Malibu. This offers convenience for investors who want to capitalize on Booking or Airbnb opportunities.
High Demand in Oceanfront Properties
Wealthy families are looking to purchase a Malibu home as it offers the perfect relaxation spot. Buying an oceanfront property is particularly popular in today’s market, as the allure of waking up to an ocean view is attractive to many buyers. As a real estate investor, this can benefit you in the long run, especially as the inventory of these kinds of properties is limited. With tourism increasing in Malibu after the pandemic, this trend can be even more beneficial for investors.
High-Demand Areas for Real Estate Investments
Malibu has several neighborhoods that have attracted home buyers over the years. The Malibu real estate report shows that the most notable areas for housing investments are the following:
Malibu Hills
Packed with modern properties amidst various natural surroundings, this area encompasses a good part of the Santa Monica Mountains. The hill-type terrain offers a panoramic view of the rest of Malibu, adding to its popularity among homebuyers as of late. A surge in sold properties is expected here, mainly as the neighborhood focuses on sustainable energy.
Malibu Road
Malibu Road real estate is soaring due to its availability in beachfront homes. Various properties in this neighborhood feature a panoramic view of the ocean and the city, with direct access to the beach. The area offers a mix of modern and charming luxury, which makes it popular among celebrities. The average home prices are also higher because of this, but as an investor, this can pay off in the future.
Serra Retreat
Serra Retreat is often the haven of residents, as it brings a type of peace that plenty of them are seeking. While it does not get the same exoticism as other areas in Malibu, the gated community attracts homebuyers who need privacy. As this has become an increasingly important factor for homeowners, list prices are expected to increase in the following years for this area.
Point Dume
Point Dume real estate has soared over the past couple of years, especially due to the area's proximity to beaches. The region is in high demand for those in the hospitality industry, renting out to beach lovers and surfers. The expansive lots and exclusivity offer the potential for further investments and growth, making the average home price likely to soar.
Malibu Park
Malibu Park is a particularly good neighborhood for home flippers and investors interested in long-term rental. Offering proximity to plenty of schools, many prospective properties are for single-family homes. The numerous equestrian trails attract outdoor enthusiasts and families, making the neighborhood great for short-term rental properties as well.
What Can We Expect from the Malibu Housing Market in the Future?
The market shows great news for every real estate agent in Los Angeles County. As the median home price in California is expected to go up by 6.2%, luxury neighborhoods such as Malibu are gaining more attention than ever. Certain factors can also influence how real estate behaves in the future based on the market's current condition.
Mortgage Rates
As we are nearing the end of 2024, the average mortgage interest rates are expected to drop. With most of them at around 5-6%, this makes financing accessible for investors looking to expand into upscale properties. The low borrowing costs also make it easier to set affordable rent prices, making Malibu an attractive option for tenants.
Supply and Demand
While there's been hope for a more balanced market with lower mortgage rates, 2024 numbers are still below average. This applies to luxury properties where the demand for homes is high while the inventory remains low.
However, this supply and demand imbalance will likely boost prices in the future, especially in beachfront areas like Malibu Beach or Malibu Road. Since new developers are limited by land availability, it's unlikely that competition will change much in the following years.
The Bottom Line - Malibu Real Estate Report and Forecast
The real estate market in Malibu remains competitive, with more and more people seeking oceanfront and luxury properties. Whether you are looking to buy your new home or catch a profitable investment property, the scene in Malibu offers plenty of growth opportunities. As the popularity is only going to increase in the future, the best time for you to invest in property is likely now, before the window closes.