Pacific Palisades real estate trends in 2024

What’s in store for this upscale market

The Los Angeles real estate market experienced its fair share of turbulence in 2023, thanks to rising mortgage rates and low inventory levels. This volatility left agents, buyers, and even sellers wrestling with conflicting emotions as they entered 2024, and understandably so. In the face of such economic headwinds, nearly everyone had to take a wait-and-see approach before making their next move.

Despite the uncertainty, though, the California Association of Realtors (CAR) maintained a positive outlook for the Golden State’s future. The month of March sees us gaining a clearer picture of the trends shaping the market for the rest of the year, and we can see that the local market is finding its footing.

This blog post will zero in on Pacific Palisades real estate, taking a closer look at how city- and state-wide trends affect the local market. If you’ve been waiting for the right time to buy or sell a home in the Palisades, this overview will help you make an informed decision.

WHAT’S HAPPENING IN THE PACIFIC PALISADES REAL ESTATE MARKET

We have an idea of what the California real estate landscape looks like, but how is Pacific Palisades faring? Is it insulated from the rest of the city, or do buyers and sellers have to exercise caution before taking their next steps? In any case, a clear understanding of the Pacific Palisades real estate market is vital if you want your next transaction to be a successful one. First, let’s take a look at a few things.

Pacific Palisades by the numbers

• Pricing trends. As of March 2024, homes for sale in Pacific Palisades have a median listing price of $5.4 million, though properties are selling for slightly lower at $3.3 million. This may be beneficial for buyers looking to enter the market. Compared to March of 2023, current values aren’t far off – the median listing price stood at $5.3 million – but it’s worth noting that, back then, properties had a median sold price of $4.6 million.
• Days on market. On average, properties are staying on the market for 42 days, which is typical for Pacific Palisades but lower than the US average. Palisadians looking to list their homes can look forward to a relatively swift selling process.
• Market balance. Pacific Palisades currently has a balanced market, with supply and demand for homes almost at the same level. This means the playing field remains equal – buyers have some negotiating power, and sellers, for their part, can still fetch a favorable amount.

Zooming out to Los Angeles and California

It wasn’t an easy year for California real estate. The sector faced several challenges: rapid FED rate hikes, higher mortgages, and a lack of inventory, which were particularly detrimental. As a result, many were uncertain about the future direction of the market. This impacted both buyers and sellers, with buyers waiting for better deals and sellers potentially hesitant to list their properties.

Nonetheless, there’s positive news for LA real estate in 2024. Existing home sales in Los Angeles County are experiencing a significant rebound. This reflects the increase in home sales across all of California, with the California Association of Realtors recently reporting a total of 256,160 sales in January. And that’s only for single-family homes.

Looking closer at Los Angeles city-wide pricing trends, we can see a median sold price of $950,000 as of March 2024. This marks a 5.56% increase year-to-date, and a 2.15% increase month-to-date.

All of this suggests a potential stabilization in prices and a healthily growing housing market, with the city’s diverse economy and consistent demand for housing expected to keep the market robust.

Are more people moving out of LA?

You’ve probably heard about the outmigration of Los Angeles locals over the last few years. In 2023, thousands of Angelenos moved out of the city and relocated to more affordable, less densely-populated areas, both out of state and in.

Pacific Palisades may not be part of this outmigration, though. Trends suggest that most of the people moving out of LA are doing so in search of quieter locales, and while Pacific Palisades is technically within LA, it still offers a more secluded environment.

The neighborhood’s location, coupled with its high-end homes and exclusivity, means many buyers still want to be part of the community. In this sense, it’s evident that Pacific Palisades has carved out its own niche, with a real estate market that remains healthy amidst fluctuations.

MARKET SNAPSHOT: HOMES FOR SALE IN PACIFIC PALISADES, CA

SOLD in PACIFIC PALISADES: 5 beds, 4 baths, 2,828 square feet

What does the current housing stock look like, and what makes properties in Pacific Palisades so desirable? Let’s take an inside look at this upscale market.

1. The housing stock is mostly single-family properties

   Pacific Palisades has a wide-ranging property market. While it’s not exactly diverse in terms of home types – it’s mostly single-family properties here – potential buyers still have a considerable number of choices when it comes to size, architecture, and the neighborhood they want to live in. Condos are the second largest market, but they only make up a slim portion of the total housing stock compared to single-family homes.

2. Luxury homes in Pacific Palisades are larger

   What’s noteworthy about the Palisades is the size of its properties. Unlike the crowded city centers of LA, luxury homes in Pacific Palisades have room to breathe, and so do their homeowners. It’s not hard to find mansions and high-end estates with more than 10,000 square feet. Residents can expand their living spaces, add rooms and features they desire, or set up outdoor spaces to take advantage of the surrounding views.

3. High-end properties are still in demand

   Homes start at around $400,000 for a one-bedroom home and can go up to $49 million for a bluff-top property. These numbers can be steep for California, but in Los Angeles, they’re par for the course. Not only that, but many discerning buyers are willing to pay a higher premium for a home in the Palisades simply because they’re worth the price.

4. Pacific Palisades is a neighborhood with historic charm…

   …and the housing market reflects it. Many homes were built in the 1940s to 1970s, with some being upgraded to suit modern needs. Once in a while, you may find a former celebrity home or historically significant property on the market.

The top neighborhoods in Pacific Palisades

Based on recent market data, these neighborhoods stand out as the best picks in Pacific Palisades for securing a home, be it for homeownership or investment purposes.

• Marquez Knolls

  Built around the 1950s, Marquez Knolls features a host of Mid-Century single-family homes, with impeccable Pacific views for those further up on the hill. This locale is suitable for families, being close to Marquez Elementary School. As of March 2024, the neighborhood has a median listing price of $4 million and is a buyer’s market, as home values are on a downward trend. Browse homes for sale in Marquez Knolls now

• Castellammare

  This Amalfi Coast-inspired neighborhood is known for its narrow streets, Italian villas, and Pacific views, making it a sought-after community. Homes for sale in Castellammare currently range from $1.2 million to nearly $7 million. Browse homes for sale in Castellammare now

• The Huntington

  One of the most expensive and upscale locales in the Palisades, The Huntington currently holds a median listing price of $7.6 million. Prices show a small downward trend of 2.3% year-over-year, with homes staying on the market for 87 days. Its population is mostly families, as it’s near schools like Palisades Charter Elementary and Paul Revere Middle. Browse homes for sale in The Huntington now

• The Highlands

  Homes, townhouses, and condos make up the diverse housing stock of The Highlands. So if you’re looking for variety beyond the traditional single-family dwelling, then this neighborhood is ideal. Home values in this area show steady growth, increasing as much as 34% year-over-year. This puts the current median listing price at $2.9 million. Browse homes for sale in The Highlands now

• The Riviera

  The Riviera is considered one of the most exclusive neighborhoods not just in the Palisades, but in greater LA. As of March 2024, homes stand at a median price of $9.7 million, or about $1,700 per square foot. Here you’ll find sprawling estates with views of both the cityscape and the Santa Monica Mountains. Access to the prestigious Riviera Country Club is a major draw. Browse homes for sale in The Riviera now

Explore 12 more neighborhoods in Pacific Palisades

WHAT BUYERS ARE LOOKING FOR IN 2024

With the Pacific Palisades market stabilizing and with the spring and summer home buying season just around the corner, it may be a good time to sell your house. Keeping a pulse on what modern buyers are looking for in their dream home can help you make the necessary improvements to your property and create a lasting impression on potential customers. Consider the following trends when marketing your home:

• Upgraded or modernized kitchens

  In a recent survey conducted by real estate company HomeLight, 94% of agents cited modern kitchens as the ultimate draw for buyers. People want their houses as move-in ready as possible, and they’re willing to pay more if it means the kitchen is functional and up-to-date. As sellers, you can either go for simple updates that spruce up the area, or bigger changes like newly-installed countertops and a fresh coat of paint.

• Bigger living spaces

  Everyone wants space, and lots of it. Whether it’s an extra storage room, an attic, or a finished basement, adding more square footage to your home makes it more enticing to buyers. This trend can be linked to the prevalence of telecommuting; with the increased amount of time spent at home, buyers are likely looking for rooms that can be converted into a home office, play areas for children, or recreational spaces.

• Outdoor improvements

  Adding a backyard deck for entertaining, a welcoming front porch to relax on, or even an outdoor kitchen for meals can go a long way. Pacific Palisades is known for its stunning views, so it’s the perfect place to make some outdoor improvements. One tip is to be strategic about where you place your furniture, making sure they frame the surrounding vistas.

• Sustainable and eco-friendly features

  More than a passing real estate trend, sustainability has become a priority for many homebuyers. Eco-friendly features not only help lower utility bills but also contribute to a smaller carbon footprint. Consider addings energy-efficient upgrades to your home, such as smart thermostats, LED lighting, and water-conserving fixtures, to attract eco-conscious buyers.

INVESTMENT OPPORTUNITIES IN PACIFIC PALISADES

This 5-bed, 6-bath smart home for sale in the Pacific Palisades neighborhood of Castellamare features a pool-area pneumatic elevator to a rooftop kitchen, grill, and terrace with views of both Santa Monica Bay and the Pacific Ocean. Inquire here.

In a time of economic uncertainty, making wise investment choices – and safeguarding your current assets – is crucial. Pacific Palisades boasts a prime housing market with compelling investment opportunities. If you play your cards right, it’s more than possible to turn a profit or grow your investment.

As mentioned earlier, the current Pacific Palisades market is balanced, which means it’s a decent time to buy. Entry points are high, but the gap between listing and selling prices suggests room for negotiation. Coupled with historically high sold prices, the current market indicates strong value retention.

Investing in the right kind of property

Looking at home values for each property type, single-family homes are currently the most promising investment option. Compared to townhomes and condos, single-family homes in Pacific Palisades exhibit the highest growth year-over-year, with a 12% increase in median sales price and a 9.5% increase in number of homes sold.

The median sold price of townhomes has also increased by 7.2% year-over-year. Condos and co-ops, on the other hand, are trending down in value year-over-year by approximately 21%, and are also staying on the market longer.

Flipping a home

With the right vision and execution, flipping a home in the Palisades can be a lucrative venture. The area’s upscale reputation makes it an attractive destination for homebuyers, increasing the likelihood of a quick sale post-renovation. Plus, the nature of homes in the Palisades – spacious, large lots, and incredible views – make them ideal for renovations that cater to the taste of discerning buyers.

Purchasing a rental

Pacific Palisades has plenty of untapped potential if you’re looking to purchase a rental property. Vacationers often flock to Southern California for its beaches and attractions, and owning property in Pacific Palisades can help you capitalize on this stream of visitors. Beyond that, long-term renters are typically attracted to the neighborhood’s schools, amenities, and quiet atmosphere. This diverse pool may be able to ensure consistent income for your property throughout the year, even during the off-season for tourists.

BECOME PART OF THE PACIFIC PALISADES COMMUNITY

No one knows the many neighborhoods of Los Angeles like James Respondek. A staple in LA real estate since 1979, James is one of the most trustworthy names in the industry, facilitating luxury transactions and assisting high-net-worth clients for nearly 45 years. His expertise, professionalism, and marketing savvy have made him one of the most sought-after Realtors in the region.

Work with the best of the best. Book your consultation with James Respondek today! Get in touch with The Respondek Team at 310.488.4400 or send us an email.