Malibu is a gorgeous, exclusive enclave nestled along the southern coast of California. With over 20 miles of coastline, Malibu is home to some of the prettiest beaches in the country. And beyond the shore, rolling hills and soaring cliffs give this community a genuinely tranquil vibe.
Homes in Malibu range from beachfront estates to sprawling hillside ranches. With everything from contemporary homes on the water to rustic ranches nestled among the foothills, there is the perfect home for everyone in Malibu. The market for buyers and sellers in this area is vibrant — here is a look at some of the real estate trends for the year.
Malibu housing market forecast for 2023
The Malibu real estate market has long been one of the most dynamic in southern California. Here is a look at some factors in the Malibu market moving through 2023.
Homes are selling for over the list price
As of Summer 2023, more homes in Malibu are selling for over the list price. On average, 25% of buyers pay over the list price for single-family residences in Malibu.
Fluctuating interest rates
Mortgage interest rates are in flux, and homebuyers should monitor these rates carefully with the advice of their lending official. As of July 2023, the interest rate for a 30-year fixed mortgage is 7.21%. Many lenders are getting more creative with their loan products to help with the increase in rates. Contact the Merrick Team to find out more information on some of these loan products.
Higher inventory and listings
The number of active sales and lease listings in the Malibu market has increased by 51% over the last year. Majority of these active listings are Lease listings as the inventory of properties for sale is still tight. This growth is concentrated in upmarket homes, and Leases with most of the listings for homes valued over $3 million.
Less net population migration
Malibu and Los Angeles County both experienced slight decreases in population migration. From April 2020 through July 2022, the population decreased by 2.6% across Malibu.
Malibu housing market trends for 2023
Through the first half of 2023, the Malibu real estate market shows promising trends, especially in the luxury property sector. Here are some trends in the market so far this year.
Homes are spending less time on the market than earlier this year
Countywide, homes are spending less time on the market now than earlier in the year. Through April 2023, homes in Los Angeles County are spending an average of 19 days on the market. This is a decrease of 13.6% month-to-month.
More homes are entering the market
The total number of homes for sale in Malibu as of April 2023 was 151, an increase of 51% year-to-year. And of the 151 homes for sale, 135 had a list price of more than $3 million.
The luxury home market is thriving
In Malibu, most homes on the market are considered luxury properties. A buyer’s guide from the California Association of Realtors found 97 homes with four or more bedrooms on the market as of May 2023. And the median price of these homes was $14.99 million.
Homes are selling close to the list price
The sale-to-list ratio, or the comparison between the final sales price and the last list price, has trended close to 100% through the first half of the year. As of May 2023, the price-to-list ratio was 97.1% for Malibu.
How COVID-19 impacted the Malibu real estate market
Real estate markets across the country felt the lasting impact of the COVID-19 pandemic. The Malibu housing market recovered quickly, especially in the luxury division, where more homes were listed and sold than in any other sector.
With an increased number of remote workers in the wake of the pandemic, homebuyers are looking for larger homes with space for work, leisure, and recreation. The Malibu real estate market has seen an increased demand for homes with amenities like office space, pools, fitness facilities, media rooms, and professional kitchens as homebuyers look to spend more time in their home.
Malibu foreclosure statistics for 2023
Foreclosed properties go through several stages, from pre-foreclosures to bank-owned to property auctions. Tracking these statistics for a specific market can help buyers and sellers make important investment decisions.
Malibu has remained insulated from the recent rise in foreclosures nationwide, tracked by ATTOM, a foremost market data collection and distribution organization. This data collection group published low foreclosure and distressed property statistics for the Malibu market in the first half of 2023. As of June 2023, there have been just four completed foreclosures in Malibu.
Malibu median home prices for 2023
The Malibu housing market has seen a slight decrease in median home values through the current year. With rapid growth in the immediate post-pandemic years, median home prices have returned to levels more similar to the ones the market experienced in 2019 and prior.
The average list price per square foot for homes for sale in Malibu has steadily risen over the last year. As of May 2023, the median list price per square foot for homes in Malibu was $2,390. Meanwhile, the average sales price for existing single-family homes in Malibu is $3.75 million as of May 2023.
Malibu real estate market: Should you invest?
Malibu is one of the most affluent, exclusive communities in southern California and Los Angeles County. Its stunning estate homes and plentiful amenities make it an attractive spot for potential homebuyers, especially those for luxury properties.
Currently, Malibu is considered a normal market. Median home prices and current inventory show normal conditions for buyers and sellers of Malibu property. A property in Malibu is a smart investment as part of a diversified portfolio, as the market has continued potential for long-term growth.
Continued growth in the Malibu real estate market
The luxury sector of the Malibu real estate market will continue strong growth for the rest of the fiscal year. With the draw of Malibu’s gorgeous homes, upscale amenities, and promised privacy, the biggest names in the entertainment and technology industries will continue to flock to this stunning coastal community.
Ready to make your move?
Are you considering a move to Malibu? Start your home search in Malibu with Brian Merrick and connect with his team to gain access to the most experienced real estate professionals in the Malibu area. Brian and his team have years of experience helping clients buy, sell, or lease homes throughout Malibu. With an eye on concierge service and client satisfaction, the Brian Merrick Team is ready to help you with your Malibu real estate needs.
Photo courtesy of Shutterstock
Photo courtesy of Shutterstock
