I’m Officially Declaring That We’ve Seen The Bottom Of The Malibu Real Estate Market
27 March 2012 · by

Really incredible breaking news! The Malibu Real Estate market is busting loose!
Man! Where do I begin? Picture the Colossas at Six Flags. You know the first big drop? We’ve been there. The big dip in the middle. We’ve been there, too. The part where you start heading back up really fast? That’s where we’re at, baby. Heading up and looking towards clear blue skies. There might be a bump or two on the way back up but I think we are flying past  the big dip!
It’s like people just got fed up with waiting around and decided to move on, regardless of their fears. We’ve been bombarded with some much bad news about everything over the last few years I think people have just had enough and are realizing that it’s just time to spend some money and grab some deals.
Here’s what going on. All the data is showing sign of a real upturn:

  • NAR is claiming we may see the strongest home sales year in the last 5 years. February pending sales up 9.2% from year ago.
  •  15 Malibu beach houses are pending and 45 deals on the land side are pending. 45! That’s a huge number!
  • 11 condos in one complex sold or pending in the last 7 months.

 

Ok enough boring stuff. Let me dish you up a hot plate of tasty good news directly from  the trenches.
I asked a few local managers to give me the low down on what they are seeing in their offices. So get out your napkin, grab a spoon, and gobble this up.
“Properly priced  Malibu property sales are driving the market. A lot of activity in all ranges. On the beach, where it had been quiet, also very active from $5mm to $10mm. Much of that inventory went into escrow the past 30 days”

-Michael Novotny Prudential Malibu Realty

“The good news is we are having a $100+ million dollar month,  it appears that approximately 20-25% of the Malibu inventory is either Back up or Pending.”

- Jay Rubenstein Coldwell Banker Malibu

“The last 60 days have seen more activity than I have seen in the last 5 years. It seems as though the “Bell has rung” for the bottom of the market. These are not low end sales but $5,000,000 to $25,000,000 and several of them. I hope it continues.”

-Jeff Chertow Pritchett- Rapf Malibu

“6.5 mil listing in BH was in the MLS for one week, received 7 offers, and closed all-cash in 3 business days…over asking.  Significant lack of good inventory. “

-Tom Dunlap Prudential Beverly Hills

So there’s the straight talk. Ready to stop worrying and step to the plate? Call me at 310 699 8428 to discuss anything about Malibu real estate.

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Comments

  1. John Woodward says:

    Mike:

    I am probably the last one but I think we may have already hit bottom. Anyone who knows me knows I tend to be much more on the conservative side when it comes to trying to access whether we have “more to go.” Sales by unit have been on a steady up rise since 2007. 2011 numbers we just short of 2005 but as everyone knows, prices were on a downward trend. This could not keep going forever.

    Taking apart several of our waterfront communities here on the southwest gulf cost of Florida was showed somewhat of a mixed bag. Siesta Key condo units we up but average price and price per square footage were still down. Longboat Key units were up and prices were flat. Our million dollar plus homes sales are up modestly by units and price per square foot went from $411.18 to $426.50 per square foot. Overall, from 2010 to 2011, indicators show a modest uptick. It definitely didn’t go down and after 6 years of this, you know it”s coming.

    Looking today and forward, I see (for example) neighborhoods where there were 12 and 15 homes last summer and fall and today there are two. There has been several occasions where we put full price offers in on homes and didn’t get them. There are 66 closed or under contract properties so far this year where we only sold 112 total last year. The pundits have rumored that the banks are going to start dumping a lot of inventory…the first time filings in Sarasota county still remain level over the past 6 months which was way down post DocX.

    It’s not to the level of the crazy times of 2005 but certainly, enough of the indicators saying we are beginning to tick up. You are certainly justified in declaring this market has bottomed.

    Good Luck in 2012 :)

    John Woodward
    Broker/Owner
    Sarasota Real Estate Group

  2. Jim Johnson says:

    I agree. I think this summer is the bottom for the West coast. I think it’s the bottom in our market here in Bend Oregon. It looks like time to buy in Malibu.