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Malibu Luxury Real Estate: 2011 Q1 Malibu Houses for Sale Closed vs 2012 Q1 Malibu Houses for Sale Closed

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Malibu Luxury Real Estate has analyzed market data avaialble to it from the MLS to analyze Malibu Homes for Sale that closed escrow in Q1 2011 versus Malibu Homes for sale that closed escrow in Q1 of 2012. Please note Malibu Luxury Real Esate used data from Section 33 of the MLS so this is not Malibu beach real estate market data relating to Malibu Beach Houses for sale that closed in these time periods. This Malibu real estate market data is regarding Malibu Houses for Sale that are on the mountain side of PCH. For specific data on Malibu beach real estate relating to Malibu beach houses for sale that closed Q1 2011 versus Malibu Beach Houses for Sale that closed in Q1 2012 please see a previous blog post on Malibu Luxury Real Estate which focuses purely on Malibu Beach Houses for sale only. Q1 2011 Malibu Luxury Real Estate Research: The total Malibu houses for sale that closed escrow in the Q1 2011 Malibu real estate market were only 22 Malibu houses out of a significant pool of inventory of Malibu houses for sale. The average number of days Malibu houses for sale were on the Q1 2011 Malibu real estate market before the Malibu houses for sale closed escrow was a significant 214 days on the Malibu real estate market. Of all the Malibu houses for sale in Q1 2011, the Malibu houses for sale that sold and closed achieved an average sale price of $2.318m. Some of the Malibu luxury homes for sale sold in excess of $6 million even though not a Malibu beach house. Q1 2012 Malibu Luxury Real Estate Research: The total number of Malibu houses for sale on the Malibu real estate market that closed escrow in Q1 of 2012 was 38 Malibu houses sold. This represented an increase of 72.7% Malibu houses for sale that sold in Q1 2012 Malibu real estate market over Malibu houses for sale that sold in Q1 2011 Malibu real estate market. The average number of days on the Malibu real estate market in Q1 2012 for Malibu houses for sale going from listing to a close of escrow was 160 days versus 214 days in Q1 2011 Malibu real estate market. This represents a 25% faster turnover of Malibu houses for sale selling. The average price for a Malibu house for sale that closed escrow in the Q1 Malibu real estate market was $1.763 Million versus $2.318 Million in the Q1 2011 Malibu Real Estate market place. So what does all this data tell us? Malibu Luxury Real Estate believes the Malibu real estate market has bottomed and that savvy people in the know of the Malibu property market have re-entered the market place to scoop up under priced Malibu homes for sale while they are still priced at bargain pricing. This resulted in a lot more Malibu homes for sale closing (72.7% more), and the Malibu homes for sale selling in a shorter duration (25% faster). Why did the average Malibu home for sale drop in price from $2.318m to $1.763m. Malibu Luxury Real Estate has a couple theories about this. First, Malibu Luxury Real Estate believes that there was a glut of inventory of Malibu homes for sale in 2011 and with moderate demand for Malibu real estate for sale, desparate sellers dropped prices for their Malibu homes for sale driving the pricing achievable for Malibu homes for sale downward. Second, Malibu Luxury Real Estate believes that a significant amount of demand has been generated for Malibu homes for sale under $2 million by historically low interest rates which make the real cost of owning a Malibu house significantly less. Since most or at least many purchasers of Malibu luxury homes for sale in excess of $2 million are cash buyers for Malibu luxury homes, and since financing jumbo loans in excess of $2 million is both more difficult and in many instances less desirable or a hassle for "the 1%", the low cost financing for Malibu homes for sale that are less than $2 million has fueled demand for the lower priced Malibu homes for sale. Malibu Luxury Real Estate believes this is in part an explanation for the lower average Malibu home price. Malibu Luxury real estate believes it was dealing with a small sample of data (only 22 Malibu homes and 38 homes respectively ), and that a 25 reduction in the average price paid for a Malibu home for sale is not soley represented by a loss of value, but partially represented by the types of Malibu homes selling in Q1 2012 Malibu real estate market versus the Q1 2011 Malibu real estate market being lesser expensive and lesser valuable Malibu homes as Malibu homes for sale that are valued and priced at under $2 million are simply more easy to be financed and the historically low finance rates are driving up demand. To receive additional market updates like this from Malibu Luxury Real Estate please sign up to be on the Malibu Luxury Real Estate email list. For questions about the current Malibu real estate market, about what your Malibu luxury home might be worth in today's hot Malibu real estate market, or to find the best values in Malibu homes for sale, please contact Mitch Hagerman, Malibu real estate broker DRE#01897348. Mitch can be reached at 310-963-4358 or at Mitch@MalibuLuxuryRealEstate.com posted: June 29, 2012 - Malibu Luxury Real Estate - Blog
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