Malibu Leads the Market In Performance

by ritasimpson on August 23, 2012

in How's The Market

The National Association of Realtors said Wednesday that sales of existing homes were up 2.3% in July  from June and 10.4% from a year earlier. In Malibu the number of sales in different price categories varied but was consistently UP, for example: comparing last year to this year’s performance in  Malibu units sold for the under $2 million range sales rose by 40% and in the $2 to $5 million range unit sales rose by 36% and in the over $5 million range sales were up by 33% .   For the Beach properties over  $5 million, the number of units sold compared to last year rose by 400%!!!

The NAR data showed that  National sales of single-family houses rose 9.9% from last year, while condo sales jumped 14%. In Malibu the largest uptick was in the over $5 million dollar beach home sales.   The condo market in Malibu faired less positively than the National average registering a 12% increase in units sold, and a 8% in median price increase with  a 15% appreciation in price per square foot paid.

On  a National level sales could have been even stronger if more low-priced foreclosed properties had been available for sale.  But there’s been a dramatic drop in distressed and especially foreclosed property sales. In July, distressed sales accounted for 24% of all transactions, down from 33% last year. In Malibu, Inventory  of distressed properties on the market has shrunk by 50%.

On the National level the low inventory of existing homes is partly fueling strong sales of New homes. Orders for new homes surged 57% in the quarter ended July 31 from a year earlier. Malibu does not have development projects, That keeps our inventory restricted and our potential for prices appreciating  even more palpable than in other markets.

On one measure the Malibu market is keeping in step with the National Market,  is  the fact that the lower-priced homes were the ones selling, this has pulled down the median prices in many price ranges.

First time home buyers made up more than one third of the sales nationwide,  which is not the case in Malibu. With Single Family Homes starting at above $600,000, Malibu attracts the more seasoned buyer.

For more on the National state of the Real Estate Market read the Wall Street Journal’s Report.

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