Malibu, California, known for its luxury homes and celebrity residents, is currently a buyer's market as of March 2026. The supply of homes exceeds demand, leading to a median listing price of $5.85 million, which is down 2.46% year-over-year. The median sale price sits at $3.6 million, a significant decrease of 35.18% year-over-year. Homes are selling, on average, for 10.5% below the asking price, with a sale-to-list price ratio of 90%. Inventory depth is approximately 510 homes for sale, indicating a limited but sufficient supply for buyers.
The market is described as "warm," with homes staying on the market for a median of 73 days, an increase of 14.06% year-over-year. Other reports indicate the average listing can sit for 95 to 175 days, up dramatically from 58 days a year ago, providing buyers with substantial negotiating leverage that was absent in prior years. Rental prices have also seen a considerable drop, with the median rent at about $20,000 per month, a decrease of 20.02% year-over-year, which may offer more affordability for renters but puts pressure on landlords. While Malibu remains one of Southern California's most expensive coastal markets, the luxury segment is not moving at a single speed.
A significant factor contributing to the buyer's market is the slow rebuilding process following the Palisades fire, which destroyed approximately 530 Malibu homes. Nine months after the fire, only 3% of reconstruction requests have cleared city review, and only around 50 approvals and 22 building permits have been issued. This slow pace frustrates homeowners, with many opting to sell their properties rather than endure the lengthy and complex rebuilding process, creating an abundance of lots and properties on the market. Lots are reportedly selling at discounts ranging from 20% to 60%.
