It is a period which only happens every 15 or 20 years and which has a profound and lasting impact on the real estate market in Malibu. This year, 2021, blew the lid off normalcy as home sales and prices hit staggering new levels. Up to August, over 200 homes have already been sold in zip code 90265 and every facet of the market has been extraordinary.
For what is likely the very first time, no Malibu home will sell for less than $ 1 million in 2021. Meanwhile, 50 homes, already in the first two-thirds of the year, have traded for at least $ 1 million. minus $ 10 million. That erases the record set all last year at 43. Just two years ago, only 19 homes were above $ 10 million along our coasts and hills.
Perhaps even more important than the current public discourse is the pace and energy of the market. The volume of real estate sales is far beyond anything that has ever been seen in Malibu. Two billion dollars this year in volume for single-family homes alone in ZIP code 90265 is virtually certain to arrive, and maybe 300 sales, which would be a benchmark not seen since 2004. The pace is absolutely breakneck.
It’s not only that 25 homes per month are closing escrow (202 total through August), but the prices are jaw-dropping, while stocks remain at near record highs. There have already been 11 sales at the $ 20 million mark; the 2017 record of 12 will soon be broken. Sales of $ 29 million, $ 51 million, or even $ 87 million don’t seem so unusual anymore. It has totaled over $ 1.5 billion in total sales volume so far this year, which will soon surpass last year’s record of $ 1.685 billion. More so, the vast majority of last year’s activity took place after June; thus, Malibu recorded nearly $ 3 billion in sales in about 14 months. It was not until 2013 that a billion dollars was disbursed for the first time for an entire calendar year. Ten years ago the volume was $ 563 million.
Malibu’s unparalleled real estate history is highlighted by years like this – 2021 joins the Hall of Fame with years such as:
â1989 (30% price increase)
â1999 (median decreased from about $ 800,000 to $ 1.1 million)
â2000 (an incredible record of 353 home sales)
â2002 (a 22% price increase on 315 sales)
â2004 (among over 300 sales, a median increase of $ 1,675,000 to $ 2.2 million)
Years like this create a whole new reality.
Fifty-nine beach and bluff sales have taken place, which means 2021 could surpass the record of 88 beach deals, set in 2000. Forget about climate change and rising seas, beach houses are being eaten by buyers, not by the waves. Over $ 800 million in volume has already been stranded on the beach, an average per sale of almost $ 14 million, incredibly. The median of those 59 sales is $ 11.05 million, by far the highest on record.
These statistics include all sales reported in the local multiple ad service and, for about 10% of transactions in Malibu, sales discovered in title searches, so-called âquietâ or âpocketâ transactions. Only properties of zip code 90265 are examined.
Each generation passes on an enormous amount of wealth to the next, which then adds its own efforts to the surplus prosperity. Every once in a while, the market moves quickly to align with this reality, and real estate prices explode. Since July of last year, the last manifestation of this phenomenon is visible. Excess liquidity, threats of inflation, pent-up lifestyle changes now unleashed among a restless population and still low interest rates are some of the reasons for this current craze.
Additionally, Malibu is still suffering from the 2018 Woolsey Fire that wiped out 17% of homes available to live in (around 700 lost). Only about fifty have been rebuilt. This only weighed more heavily the forces of supply and demand in favor of more demand against less supply. Recent government population reports of fewer people in Malibu only mean that those still living here or moving have a slightly larger slice of the real estate pie.
The lowest price for a home sale this year was over $ 1.2 million. That was the word. It is possible that some properties are still worth less than a million and sell accordingly; they just didn’t.
Last year, the median price of a house sold on the land side (without direct beach access) was $ 3.2 million. This year it is over $ 3.7 million. The 143 land sales through August averaged $ 5 million (for a volume of about $ 711 million over eight months). Last year it was close to $ 4.4 million. Prices are clearly increasing in all facets of the market and it’s just a matter of how much and for how long.
Rick Wallace of Keller Williams Realty has been a real estate agent in Malibu for 33 years and has contributed real estate columns to the community for 27 years.