Big homes are only getting bigger. A new study has revealed that luxury mansions such as those dotting the Malibu coastline, are the properties that are adding the most square footage in remodeling.
According to a recent survey by Houzz, a home-design website, home owners that are most likely to add on to their square footage with a home addition or additional structure on the property are those who already own large homes. In the survey, respondents who owned homes with more than 4,000 square feet were twice as likely to add an additional 1,000 square feet of living space as those with homes under 4,000 square feet.
“It’s a combination of being able to afford it and wanting to add more luxury spaces, like a home gym or basketball court,” Lisa Hausman, vice president of community at Houzz, said to the Wall Street Journal.
The survey polled approximately 99,997 respondents over a three-month period from January to March 2014. The various questions asked regarded remodeling projects completed in the last five years and changes in the square footage of homes.
According to Home Innovation Research Labs, a subsidiary of the National Association of Home Builders, only about 6 percent of existing homes in the U.S. measure more than 4,000 square feet, while only 10 percent of newly built homes are more than 4,000 square feet.
Malibu Real Estate Market Update
The larger, more luxurious homes of Malibu are not only prime contenders for large remodeling projects, but they are also looking good for potential luxury home buyers according to Altos Research, a California-based real estate analytics company.
The median price for a single-family home in Malibu reached an approximate value of $4,642,308 in early April and has managed to maintain that level for the last six weeks or so. Among local markets that are experiencing extreme increases and decreases in home values lately, Malibu’s reticence to change is somewhat refreshing and has opened up the market to favor home buyers.
The Market Action Index is a value unique to Altos that analyzes from a neutral value of 30 if the market is trending up into seller’s territory or low into buyers territory. Malibu is a deviation in a predominantly seller-favored region with a heavily buyer-favored MAI of 25.95. This means that inventory is outpacing buyer demand and may work to bring down home prices just a bit.
Altos indicates that the inventory of homes in Malibu is up to about 207 properties as of May 30. This isn’t a huge swell, but is definitely an increase on earlier in the year. It will be interesting to see if buyer demand heats up during the next few weeks which are known as peak home buying season.
In a beautiful community such as Malibu, it’s always peak buying season. If you are in the market for a luxury home in Malibu, let our team of real estate experts show you around. Please call us today!
Check out these Malibu homes priced from $4.5 million to $5.5 million
$4,995,000 : 1172 ENCINAL CANYON Road, Malibu12 beds, 9 baths
$4,995,000 : 23287 PALM CANYON Lane, Malibu6 beds, 5 baths
$4,999,500 : 3539 CROSS CREEK Lane, Malibu6 beds, 6 baths
$4,690,000 : 5821 FOXVIEW Drive, Malibu4 beds, 4 baths
$5,499,000 : 3567 SERRA Road, Malibu4 beds, 4 baths
See all City of Malibu Luxury Homes For Sale.
(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.