Average home sale price in Malibu reaches $2 million
By Rick Wallace/Special to The Malibu Times
It wasn’t supposed to be this good of a year. After Sept. 11 made a placid 2001 even milder, expectations for this year were for prices to remain steady with moderate sales volume. Instead, the first half of 2002 has been gangbusters for the Malibu real estate market. Through June, the average sale price has jumped to exactly $2 million per home. Volume has been enormous as 152 homes have sold in Malibu for a total cost of $304,600,000.
Low interest rates, a buzzing local economy and scarce supply have driven buyers to bid aggressively and pay more as Malibu heads to its best year ever.
The median price of a sale has also fired upward. Currently, the median price is about $1,375,000, the highest ever in Malibu and comparable to any city or enclave in America. Last year, the median dropped to about $1,150,000 million from the record set in 2000 of $1.25 million.
With a half-year’s activity in the books, it is unlikely the averages will change much by year-end, though they could slip slightly. Malibu will surely achieve an all-time high pricing standard in 2002.
2001 ended a four-year run of heavy sales that averaged 300 homes per year. Last year, approximately 240 Malibu homes sold. Such a pace was expected this year. Nevertheless, despite the thinnest selection of inventory in a generation, buyers have been ravenous. The mean average home price last year was about $1.83 million – it has increased 10 percent this year, already. The median price is up nearly 20 percent!
Record sales volume in 2000, just under $600 million for homes alone, may be surpassed this year.
Sales have been made up of 32 beach sales and 120 sales off the beach, also considered “land side”. The median beach price has been approximately $2.5 million. On the land side, the median is also the highest ever, $1.2 million. The median is the price point where half the sales are higher and half are lower. In a strong market, a greater ratio of expensive homes is purchased and the value for all homes increases.
Big-money homes have sold indeed. At least three sales have topped $10 million. A select group of 12 homes, trading for $5 million or more, account for over $90 million volume which has helped the overall average in Malibu rise.
The tally of 152 homes sold is from information gleaned by the local Multiple Listing Service, public records of “quiet sales” and estimates from word-of-mouth leads. Only single family residences with a 90265 zip code are considered in the average, though the condo market itself has been red-hot.
While other Southern California industries struggle, real estate remains strong, perhaps siphoning off money from the ailing equities market. How long it will last is unknown. The few home choices that buyers have, particularly under $1.3 million, suggest continued upward pressure on prices. Interest rates could head north for some distance before they cast a meaningful gloom upon buyer attitudes.
The draconian initial proposals of the California Coastal Commission has had little impact on the market, as most principals expect a more reasonable Malibu Land Use Plan ultimately implemented. Should that not be the case, the market flavor could change mightily by year-end.
The prevalence of heavy dollars on the beach and bluff has made the greatest difference this year. After only 47 such properties sold last in 2001, 32 have closed escrow through June this year.
In all of Malibu, 46 homes have sold under $1 million (about 25 are currently listed). Sixty-four homes have sold between $1 – 2 million.
Rick Wallace of the Coldwell Banker Company has been a Realtor in Malibu for 14 years. He can be reached at RICKMALIBUrealestate.com