Paradise Cove Mobile Home Park, located in Malibu, California, has transformed from a blue-collar community into a celebrity hotspot. It’s like Beverly Hills, but on wheels! Home to 256 trailers and manufactured homes, it dates back to the 1950s, when the then-owners allowed fishermen to park campers there. Starting in the early 2000s, big name celebrities like Stevie Nicks, Minnie Driver, and Matthew McConaughey bought trailers in the park. And can you blame them? The place has everything: breathtaking ocean views, a secluded cove, and of course, a sense of community…or at least, it used to.
The influx of A-listers is making locals feel like their small-town feel is disappearing. The price of trailers has been driven up due to low inventory and pandemic-induced demand, with roughly 30 trailers selling for as high as around $5 million in the past three years. This is widely considered the most expensive trailer park in the U.S. There are even rumors of off-market deals for as high as $7 million! However, prospective buyers are “concerned” about the fact that they don’t own the land under their homes and must also pay monthly rent on their parcels…
Many of these celebs buy the trailers, and then fix them up to be lavish L.A. worthy getaways. Local residents Ryan Addison and his wife Darlene moved in back in 2009 for just $315,000. Wow, did they get lucky or what! When asked how Ryan felt about the influx of celebs, he said: “We see people coming in and just blowing out their house. It’s all high-end finishes and stuff,” he said. “At first, we were in disbelief. And now I’m just like, ‘Yeah, whatever.’ Just another person with money.”
Denver’s real estate market in March showed a significant increase in active listings, up by a whopping 103% from last year, signaling a potential shift in the market. With around 4,500 active properties at the end of the month, this is still significantly lower than the 30-year average of about 13,600 listings at this time of year. However, the increase is notable, given that the market has been exceptionally tight for the past few years. This indicates that sellers are becoming more comfortable with the current market environment, despite the economic downturn and fluctuating mortgage rates. Despite the increase in listings, prices have dropped by an average of around 5% from last year, with homes experiencing a more significant decline of 6% and condos dropping by 4%. The average days on market increased to 37 days, compared to just 12 days in March of last year. Furthermore, 37% of homes required at least one price reduction to sell, indicating that sellers may still need to be flexible with their pricing.
For sellers, the latest data shows that pricing your home appropriately is critical in this more competitive environment. With 37% of homes having required at least one price reduction to sell in March, it’s essential to determine the right listing price and not overprice your home. The good news is that this figure is an improvement from November 2022 when the market likely hit the bottom of its cycle, and 58% of homes required a price cut to sell. This suggests that the market has stabilized somewhat, and while it’s still crucial to price your home competitively, there may be less downward pressure on pricing than at the end of last year. Overall, setting the right price is key to achieving a successful sale in Colorado’s evolving real estate landscape.
Buyers can still expect a competitive market, but the rise in inventory since last year is helping the situation. Overall, while the increase in listings is a promising sign for buyers, it’s too early to tell if this trend will continue, or if the market will revert to its previously tighter conditions. Nonetheless, this shift could provide a window of opportunity for buyers to make their move in a changing market.
Mortgage rates have fluctuated this year in the 6% range, and it seems buyers and sellers are still adjusting to the new rate environment. It’s not quite “business as usual” like the pre-COVID years. Interestingly, the average discount rate in March was only 0.2%, a stark contrast to last year’s 6.4% premium. This suggests that buyers are getting homes for very close to what they are listed for this spring season.
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