Brexit and summertime have contributed to what is definitely a hot real estate market. While there’s all around good news for sellers in terms of rising home values, it’s a buyers’ market right now.
Great Britain’s recent vote to leave the European Union has caused mortgage rates to drop to lows that haven’t been seen since May 2013. This has caused potential home buyers to get off the fence, and start making some deals.
The good news for Malibu home sellers is they might see interest from foreign buyers. The fallout from the Brexit vote may drive those with large amounts of money to invest it elsewhere until things calm down.
Some experts expect the fallout from the vote to be a boon for the U.S. real estate market as more foreign buyers seek out a safe haven to park their cash.” — CNN Money
Also important to consider is the average number of days on the market for Malibu homes has dropped to 117 from the previous report of 158 DOM. This means homes are selling faster during these hot summer months.
Boosting the good news for sellers is Malibu home values are still rising. The median Malibu home value as of July 1 is $2.58 million.
For Malibu home buyers, there’s slightly more to choose from, as inventory has increased to 248 single-family Malibu homes listed for sale, compared to 235 in our last report. In addition, there are a few more condominiums/townhomes listed: 32.
As well, the median asking price for single-family homes has dropped slightly from $5,395 million to $4,995 million.
This data includes homes priced between $750,000 and $57.5 million. Two Malibu homes are listed in the $50 million range. A 4 bedroom, 5 bath home with more than 8,900 square feet designed by famed architect Ed Niles is listed at $53 million. The other, with an asking price of $57.5 million is located on Carbon Beach and has 7 bedrooms and 8 full baths.
Sixteen homes are listed between $8.7 million and $8.9 million. And 30 homes are priced between $3.2 million and $3.9 million. 77 homes have asking prices between $750,000 and $3.2 million, with the bulk in the mid-$2 million range.
The median sales price, according to the latest MLS data, is $2,882 million.
As to where the Malibu real estate market is heading, the average price per square feet for properties in escrow, and pending sales is an interesting indicator: which as of July 1, were $1,281 and $855 per square foot respectively.
This is a slight dip from that past 6 months of sales, which show an average price per square foot at $1,487.00. The one consideration is that pending prices tend to go down after credits, reductions and similar situations.
Many thought interest rates would be going up at some point this year. However, with the latest political events in Great Britain, as well as other events, the forecast is the next rate hike will take place sometime next year.
This means mortgage rates should remain near two-year lows. Anyone looking to purchase a Malibu home will be encouraged with 30-year interest rates that have dropped to 3.48%, the lowest rate since May 2013.
For home buyers or refinancers interested in 15-year mortgages, interest rates have dropped to 2.78 percent from 2.83 percent.
Malibu real estate agent Russell Grether is the Estate Director at Compass, Malibu. He can be reached at 310.994.4247 or by sending a message.