By MICHAEL EDLEN | Special to the Palisadian-Post
“Is anyone buying yet in the Palisades?”
“Have prices really dropped by 50%?”
“Are any homes selling today?”
“Has the leasing market dried up?”
These are just some of the questions circulating as we begin to assess how the real estate market has responded to the devastation of the Palisades fire four months ago. Understandably, answers vary depending on the neighborhood and proximity to burn zones, though the data reveals a much more active and nuanced market than many may realize.
Home Sales: Limited but Strong
Since January 7, 12 homes have sold in Pacific Palisades. As would be expected, 75% of them were in the Riviera and Rustic Canyon—areas least affected by the fires. These were all standing homes, with an average sale price exceeding $7 million. Of the 40 homes currently on the market, half are in the Riviera, Rustic Canyon and the Huntington, listed at an average of $10 million.
Leasing Activity Continues
Leasing has also remained active, with more than one home leased per week on average, primarily in the same neighborhoods where home sales have occurred. The median lease price to date is $35,000 per month, reflecting strong ongoing demand for high-end leases in unaffected or less-affected areas.
Vacant Lots: The New Market Segment
The most significant market shift is the emergence of a large inventory of vacant lots. At the start of the year, only a few were available. Today, that number has grown to over 175. Yet demand remains steady, with more than 10 lot sales per month and an average price of $2.5 million.
Of the 42 lots sold so far:
- 38% received multiple offers, typically those priced near or below realistic market value.
- 33% had price reductions before they sold.
- 30% of current listings or escrows have also undergone price adjustments.
Pricing appropriately has proven to be a critical factor in achieving results.
Market Conditions: A Buyer’s Advantage
Depending on the neighborhood and its proximity to fire-damaged zones, both home and land values are currently down by approximately 20 to 40%. At today’s absorption rate, there is enough vacant lot inventory to last about 18 months, marking this as a strong buyer’s market. Sellers who are responsive to market conditions are seeing meaningful activity; others may find themselves waiting a long while.
Looking Ahead: Making Informed Decisions
While the landscape has changed dramatically, the market is far from inactive. Activity continues, particularly in certain neighborhoods, and well-priced properties are attracting interest.
Every situation is unique, and we’re here to help you make informed decisions. Whether you’re thinking of selling, buying, leasing or just want to understand how values may have shifted in your specific area, feel free to reach out.
We’re just a call, text or email away, and always available at team@edlenteam.com or 310-600-7422.
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