As Malibu's rental market cools, sales for affordable beachfront properties are on the rise
Summer is typically the prime season for beachfront rental properties to generate a flurry of activity on the housing market, and but a recent article in the Los Angeles Times reported that the market for rental properties in Malibu is cooling off as the peak rental season comes to an end. The Los Angeles Times stated that the local Multiple Listing Service showed a considerable decline in rental property transactions over the past five years. Rental closings decreased by 25 percent from last year, and half as many lease transactions were reported this year as during the same time frame in 2008. The decline in Malibu's market activity has translated into good deals for consumers, and the Los Angeles Times revealed industry statistics that indicated rental properties in Malibu could be secured for as little as $150 per night.
Real estate experts interviewed by the Los Angeles Times said that decreased competition for rental houses among consumers who have tightened their budgets and an active for-sale market has increased short-term rental transactions. Local experts told the source that three-month lease agreements were common five years ago, but consumers are now haggling for two- or three-day rentals. Malibu homeowners are less than enthusiastic about the popularity of short-term rentals, and agents reported that most luxury homeowners don't want to consider lease agreements lasting for less than a month.
An article in the Malibu Times concluded that the market for the most affordable homes for sale in Los Angeles within the Malibu area has gained momentum. Malibu West and Sea View Estates are Malibu's the least expensive tract neighborhoods in the beachfront community, and both have reported sales under $1 million. The most affordable condominium complexes in Malibu have reported slow sales, although selling prices suggest that competition among consumers for affordable prices has contributed to a slight increase in the value of moderately priced Malibu real estate.
According to real estate research firm DataQuick, 18 Malibu homes were sold between July 2011 and July 2012, which is a 1.88 percent decrease in annual market activity. The Malibu Times suggested that some sellers may be waiting to list their properties until there is a significant upswing in market activity. However, due to the amount of foreclosure properties on the market, the troubled economy may continue to shift the Malibu market in favor of consumers.