From the desk of Greg M. Ingerson, Attorney At Law
During the Summer season, 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 444 homes for sale in Malibu and 14 sold. Translation, under current market conditions, in any given month, you have about a 1 in 32 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.
The Numbers Don’t Lie, Here Is What’s Happening:
On July 1, 2009, there were 444 active listings for sale in the Malibu Market: 359 Houses; 30 Townhouses; and 55 Condominiums.
In the past year, there were 661 homes sold in Malibu (between 7.01.08 and 6.30.09): 519 Houses; 55 Townhouses; and 87 Condominiums.
What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 1.5 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 249 days, Townhouses will be on the market an average of 196 days, and Condominiums should be on the market an average of 228 days.
Market Recap for the Month of June, 2009
When one compares the June results with the yearly result, we find that there is an approximately 31.7 month inventory of homes for sale in Malibu.
Broken down by specific property type, we find that there is a 44.9 month inventory of Houses, a 10 month inventory of Townhouses, and a 18.3 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 June 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 more information regarding the South Bay 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 24 Hours a Day.
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- Find Out What The House Down The Street Sold For
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Malibu Home Sales by the Numbers
14 sold in June 2009
11 sold in June 2008
444 Current Active Listings
359 Houses
30 Townhouses
55 Condos
14 Sold in June 2009
8 Houses
3 Townhouses
3 Condos
18 Contingent & Pending in June 2009
16 Houses
1 Townhouses
1 Condos
36 Expired in June 2009
27 Houses
3 Townhouses
6 Condos
11 Sold in June 2008
10 Houses
0 Townhouses
1 Condos
32 Sold in June 2007
19 Houses
3 Townhouses
2 Condos
25 Sold in June 2006
19 Houses
3 Townhouses
3 Condos
47 Sold in June 2005
35 Houses
3 Townhouses
9 Condos
41 Sold in June 2004
32 Houses
2 Townhouses
7 Condos
45 Sold in June 2003
34 Houses
9 Townhouses
2 Condos
48 Sold in June 2002
40 Houses
4 Townhouses
4 Condos
29 Sold in June 2001
23 Houses
3 Townhouses
3 Condos
60 Sold in June 2000
53 Houses
4 Townhouses
3 Condos
30 Expired in June 2008
23 Houses
5 Townhouses
2 Condos
25 Expired in June 2007
23 Houses
2 Townhouses
0 Condos
22 Expired in June 2006
20 Houses
1 Townhouses
1 Condos
12 Expired in June 2005
10 Houses
1 Townhouses
1 Condos
20 Expired in June 2004
19 Houses
0 Townhouses
1 Condos
23 Expired in June 2003
20 Houses
3 Townhouses
0 Condos
25 Expired in June 2002
22 Houses
3 Townhouses
0 Condos
16 Expired in June 2001
14 Houses
4 Townhouses
0 Condos
35 Expired in June 2000
28 Houses
2 Townhouses
5 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
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