After weeks of skyrocketing home prices and soaring rents in Malibu, California, the market for homes in the coastal city is still in turmoil, with the real-sale market showing signs of slowing.
The market has been in a bubble since March, but sales have continued to soar.
At the same time, the real estate market has continued to drop.
In the third quarter, home sales fell 5.5% year over year, the National Association of Realtors said Friday.
That’s the lowest sales figure in a quarter since 2009.
The NAR said that in March, the median sale price was $1.2 million, up from $1 million a year ago.
That number is below the $1-million median of $1,955,000 recorded in the same quarter in 2016.
The median price dropped 10.5%, to $1 billion.
“While the market is recovering from its March high, it’s not recovering from the recent high that we had, and it’s still too early to predict where it’ll stay,” said David Riegel, chief economist at the National Assn.
of Realty Investors.
The downturn has also hurt sales in the city’s downtown.
“The downtown market is in a severe slump,” said Mark Siegel, president of Siegel Realty Group.
“I think that the downtown market really did struggle during the March crash.”
Real estate brokers say prices in Malibos downtown area have been declining for more than a year.
But they say it could get worse.
“We’ve been seeing this slowdown since March,” said Chris McBride, president and chief executive of San Diego-based McBride Realty, adding that prices have been falling faster in the last three months than in any other period.
“It’s very hard to see how things will rebound.
There’s a lack of urgency to take a step back from the situation.”
Home sales in Los Angeles have been soaring, with nearly 1,000 homes sold last week.
The Los Angeles County-based Real Estate Board of Greater Los Angeles said in a report Thursday that sales in its Los Angeles market jumped by 18% in March from the same month in 2016, as buyers in the neighborhood flocked to neighborhoods with a higher vacancy rate.
Sales in other Los Angeles neighborhoods also rose, including Venice and Pasadena.
In some neighborhoods, sales are booming, as are rents.
At this point, it remains unclear whether the downturn will be permanent.
“For a long time, there’s been a lot of chatter about the market in Malibe,” said Robert Deutsch, chief executive officer of Deutsch Real Estate Services.
“But we are seeing that the real world is not so conducive to the sale of homes.”