Shortage of insurance, expensive permitting and construction mean that some people are selling lots rather than rebuilding.
(Editor’s note: With about $600 million slated to be used in school construction for two elementary schools and the high school, and with the most recent announcement (April 10) of an upgraded and planned new Palisades Park and Recreation Center, CTN turned to Almalfi Estates Founder Anthony Marguleas for a Real Estate update in Pacific Palisades after the January 7 Palisades Fire.)
By ANTHONY MARGULEAS
As we mark three months since the devastating fires, our community continues to show tremendous resilience and unity. Here’s the latest on our recovery progress and market trends:
The U.S. Army Corps of Engineers (USACE) has made significant progress. To date, over 1,000 properties in Pacific Palisades have been cleared. With a goal of clearing 1,500 parcels per month, debris removal is expected to be largely completed by mid-summer.
The Right of Entry (ROE) deadline for homeowners to opt in or out of the Army Corps program has been extended to April 15, 2025.
Over the past two weeks, we’ve averaged 26 burned lots per week coming to market or about 3.7 lots per day. (During the Community Council meeting announced that 177 lots had come on as of April 10.)
View the lots: click here.
- 160 burned-down parcels have been listed
- 131 active
- 13 under contract
- 16 sold
That’s 18% of listings currently in escrow or sold (29 out of 160)
Price Reductions:
We’re seeing a growing trend in price adjustments, with a nearly 50% week-over-week increase in price drops:
- 3 weeks ago: 5
- 2 weeks ago: 8
- Last week: 13
Well-priced lots — often listed strategically below market to spark bidding wars — are the ones moving quickly. For example: 654 Jacon was listed at $999K ($122/ft) and sold for $1.65M ($202/ft).
Inventory Outlook:
At the current pace, we expect 110 new burned lots to come on the market every 30 days. Over the next 8–12 months, we will likely see 1,000–1,300 total burned-down properties listed.
If you’re considering selling, acting sooner may help preserve more equity, as the expected increase in inventory is likely to place downward pressure on pricing.
Since the fires:
- 57 single-family homes listed: 46 active, 7 in escrow, 4 sold (most in non-fire areas)
- 15 condos listed (primarily in the Highlands): 13 active, 1 in escrow, 1 sold No fire-damaged condos (airspace) have been listed
- 39 residential leases listed: 30 active, 9 leased (mostly in non-fire zones)
Altadena vs. Palisades:
If one were to compare Altadena and the Palisades there is a significant difference. In Altadena 69 percent of the 131 burned lots are in escrow or sold – 39 active, 34 in escrow and 56 sold.
Palisades only has 18 percent in escrow or sold out of 160 burned lots listed – 13 are under contract and 16 are sold.
The key difference seems to be affordability. The Altadena average land sale price is $664,120 and in Palisades the land price is $2,815,875.
That’s a 325% higher price point in the Palisades, making Altadena more affordable to a broader range of buyers.
To reach Marguleas click here.
Just a note. Within 5 days of the fire, my highlands single-family home untouched by the fire was considered by City National Bank to have devalued by 50%. There is no documentation to back this up. As a result, the bank reduced my as of yet, equity line from $350,000 to $50,000. If I had needed that money to shore up my property due to damage it would have been no longer available. City National Bank is not community-oriented and has not been since bought out by a Canadian bank. I would consider this in determining where the community wants to place their banking needs and trust.
I believe the listing of 1309 Palisades Drive is a condo lot (airspace) in the Highlands.
Craig, Thanks for the note! Just to clarify—I was referring to condo buildings where you have neighbors above, below, and on both sides, as opposed to townhomes, which typically have just one shared wall and often feel more like standalone residences.
1309 Palisades Drive falls into the townhome-style category, with more privacy and less of the stacked layout you’d find in traditional condo buildings.
The schools were built on a portion of the old Palisades town dump. Is there a plan for cleanup of the town dump before schools are rebuilt?
The town dump was Potrero Canyon according to historical records, not the school grounds- and Potrero Canyon was cleaned before it was filled to make a park.