Malibu Real Estate Market Prices, Trends, & Forecasts 2023

Malibu is one of the most luxurious places in the world. The famed Southern California region stretches 27 miles along the Pacific Coast and the Pacific Coast Highway, covering thousands of acres. Malibu is filled with celebrity homes, mega mansions, and Mediterranean beach homes atop bluffs or tucked into neighborhoods steps from the beach. It’s also a surfer’s paradise; the epic waves have drawn thrillseekers for nearly a century, well before the region became known as an enclave for the rich and famous.

All of this is to say that the Malibu real estate market is alive, well, and thriving for many reasons. And that’s without even mentioning the many fine dining locations, the upscale shopping, and the green parks and miles of trails for residents to enjoy as an everyday occurrence. Read on to learn more about what sets Malibu real estate apart in 2023.

It’s only fair to characterize today’s housing market as uncertain. Home prices have fluctuated since 2020, even before the pandemic struck. Interest rates nationwide have climbed above 7% and seemingly are on pause, disrupting buyer demand and seller motivation.

Still, regarding real estate market forecasts, California always comes out on top. The state’s robust market for luxury real estate prevails amid uncertainty. Investors everywhere, from Silicon Valley to Los Angeles, are rewarded with property appreciation. As one of California’s highest-profile residential areas, Malibu is a niche luxury market with its own set of rules.

Malibu is among several cities that make up Los Angeles County and is one of the most luxurious. The county has a wide range of suburban, urban, and cosmopolitan cities, from Beverly Hills and Santa Monica to Compton and West Covina, with 88 cities and 140 unincorporated communities. This creates a dynamic mix of more affordable housing and homes available only to the uber-wealthy. The area has a strong market for luxury real estate, especially in iconic neighborhoods like Beverly Hills, Bel Air, and Malibu.

Even as Californians migrate elsewhere for quietude and lower prices, Malibu remains attractive. High demand for Malibu real estate is a given. Meanwhile, sellers who purchased their existing homes at lower interest rates are inclined to wait to sell. With steady demand and constrained inventory, the current Malibu real estate market favors sellers. It’s a win-win situation for Malibu sellers: find a highly motivated buyer now or wait for interest rates to drop, leading to an even higher sales price.

 

Despite the bluster surrounding rising interest rates and negative net migration, the housing market in Malibu has been largely unaffected. Though higher than usual, interest rates are less prohibitive to the class of buyers interested in Malibu’s world-class real estate. Conservative projections envision two more rate hikes in 2023; should rates continue to stall, that would raise the figurative floor for the Malibu real estate market. As for California’s population crisis, the most affected areas are larger cities; it’s safe to say most Malibu homeowners are content with their lifestyle and amenities.

Malibu is an excellent investment whether you are considering buying a home as a primary residence, vacation home, or rental. Home values are expected to rise in the long run, warranting your attention as a prospective buyer.

If you’re preparing to enter the market for Malibu real estate, it helps to be familiar with the local markets. Malibu is bisected by Highway 1, one of the world’s most spectacular roads. The most expensive properties overlook the Pacific Ocean. Malibu can be divided into smaller areas like Malibu Colony, Malibu Park, Malibu Road, Broach Beach, and Point Dume. Each neighborhood caters to different luxury tastes; ask a local expert real estate agent for their recommendations.

As of July 2023, expert agent Kristin Jaman had access to 229 properties publicly listed in Malibu (that figure does not include the significant number of private or “pocket-listed” homes). The top decile of Malibu properties are priced at $26 million and above — this is the ceiling of the local real estate market.

Of the properties listed in Malibu, over a fourth (63 of 229) are parcels of land for new construction. When you remove those lots from the equation and focus on existing residential properties, you get a clearer portrait of the luxury real estate market. About half of Malibu’s residential properties are priced between $2 million and $10 million. Furthermore, about a third of the properties are priced at $15 million and above. In other words, Malibu is the rare real estate market with several “luxury” tiers — a place that caters equally to A-list celebrities, the independently affluent, and high-earning tech employees, for example.

In general, Malibu is simultaneously a fantastic to live in and a market where property appreciation is likely. It’s hard to go wrong investing in Malibu real estate. That said, your answer depends more on your unique financial position than on the vagaries of luxury real estate. Does your plan involve renting your property, using it as a vacation home, or living there permanently? Do you have enough funds for a substantial down payment? If you require financing, can you wait for more favorable interest rates? And do you foresee a time when you’ll sell the home you want to buy? An expert Malibu real estate agent can help you think through such questions and arrive at a rock-solid plan for investment.

Kristin Jaman has been practicing real estate in Malibu and the surrounding areas for over 30 years. She has decades of professionalism, a solid work ethic, and open communication. Kristin works as an independent realtor in her office with a support staff that works hard to serve their clients. This approach allows her to maintain a laser focus on exceeding the expectations of her clientele. If you are ready to make a move in Malibu real estate, contact Kristin today.