Malibu Land, Malibu land for sale – Market update
Currently in Malibu we have a staggering amount of inventory on the market. Right now there are 219 listings of Malibu Land for sale over $75,000. Interestingly, the average days on market for this land is 332 days which shows us that the land that is on the market generally is well seasoned and the absorption rate of land is quite low.
The highest price for Malibu land is $21 million and the median price of Malibu land for sale is $625,000. The biggest issues that are determining the value of the land in Malibu are related to how far along the property is in the planning stage with the city and if the property meets the current Fire flow requirements that have stonewalled many properties that would otherwise be able to proceed to building permits. For more information on the fire flow requirements, please feel free to call me.
In the last 6 months, 21 parcels have sold with the average days on market for that Malibu land being 134 days. This lower number indicates that there is still a strong market for land and well priced Malibu land for sale will sell. The problem is, however, that with so much inventory to compete with severe discounting and heavy marketing are required to sell properties.
One interesting note to meet about the current Malibu land statistics is that the highest price for land that has sold was only 2.3 million. The original price for this parcel was 2.75 million!
I think that this is interesting because although people seem to be ‘land banking’ and investing the lower priced land for sale, people seem to be quite aware that there are some incredible deals for Malibu real estate that are available and it would appear that buying a house is much simpler than developing land from the ground up.
Things to consider before buying Malibu land for sale is:
1. What is the state of the permitting process?
2 . How much investigative work has been done on the land? Have there been geological studies, percolation studies, archeology, biology, etc?
3. Are there any pending easement issues?
4. How much would it cost to build a home there? If looking at it from an investment perspective, is the cost of the land, the carrying cost, and the cost to build the home more than its current neighbors? If so, it might not be a wise decision. If it is your dream location or you feel that the market will continue to improve (which I do), go for it!
5. Did you know you can get financing on lots and construction loans? I have some mortgage brokers who do incredible financing rates for land in Malibu. Contact me today for details.
Russell Grether is a real estate agent based out of Malibu California with Compass Real Estate. Contact him at 310.589.2471 for more information on Malibu land for sale.