The Malibu Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

As we head into Summer, Malibu home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 391 homes for sale in Malibu and 10 sold. Translation, under current market conditions, in any given month, you have about a 1 in 39 chance of selling your home.

In other words, when pricing your home, the practice of adding a “Pad” or “Cushion” to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today’s market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What’s Happening:
On June 1, 2008, there were 391 active listings for sale in the Malibu Market (Area 32,33): 312 Houses; 19 Townhouses; and 60 Condominiums.

In the past year, there were 192 homes sold in Malibu (between 6.01.07 and 5.31.08): 156 Houses; 14 Townhouses; and 22 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 0.5 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 720 days, Townhouses will be on the market an average of 489 days, and Condominiums should be on the market an average of 981 days.

Market Recap for the Month of May 2008
When one compares the May results with the yearly result, we find that there is an approximately 39.1 month inventory of homes for sale in Malibu.

Broken down by specific property type, we find that there is a 34.7 month inventory of Houses, a 0 month inventory of Townhouses, and a 60 month inventory of Condominiums on the market in Malibu. (Based on current absorption rates).

How should a Seller approach the market? The key in today’s market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the Malibu and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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Malibu Home Sales by the Numbers
10 sold in May 2008
25 sold in May 2007

391 Current Active Listings
312 Houses
19 Townhouses
60 Condos

10 Sold in May 2008
9 Houses
0 Townhouses
1 Condos

35 Expired in May 2008
28 Houses
4 Townhouses
3 Condos

13 Contingent & Pending in May 2008
12 Houses
1 Townhouses
0 Condos

25 Sold in May 2007
22 Houses
0 Townhouses
3 Condos

33 Sold in May 2006
27 Houses
2 Townhouses
4 Condos

43 Sold in May 2005
29 Houses
8 Townhouses
6 Condos

39 Sold in May 2004
32 Houses
3 Townhouses
4 Condos

39 Sold in May 2003
25 Houses
7 Townhouses
7 Condos

55 Sold in May 2002
39 Houses
9 Townhouses
7 Condos

44 Sold in May 2001
40 Houses
2 Townhouses
2 Condos

43 Sold in May 2000
35 Houses
2 Townhouses
6 Condos

20 Expired in May 2007
17 Houses
0 Townhouses
3 Condos

16 Expired in May 2006
14 Houses
0 Townhouses
2 Condos

18 Expired in May 2005
13 Houses
1 Townhouses
4 Condos

17 Expired in May 2004
15 Houses
1 Townhouses
1 Condos

22 Expired in May 2003
20 Houses
1 Townhouses
1 Condos

29 Expired in May 2002
23 Houses
3 Townhouses
3 Condos

24 Expired in May 2001
21 Houses
2 Townhouses
1 Condos

24 Expired in May 2000
21 Houses
2 Townhouses
1 Condos

To search for bank owned properties on the market go to http://www.LAHomeSearch.com

To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, Santa Monica, and Malibu go to http://www.LAHomeSearch.com

For Los Angeles Real Estate go to http://www.LAHomeSearch.com

To search for “For Sale By Owner” properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com

Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com

About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com