Palisades Is Second Most Expensive Housing Market in U.S., Report Says

Open houses are buzzing with buyers in the Palisades, which is not the case in all communities.

According to a recent Coldwell Banker ranking of North America’s most expensive and most affordable housing markets, Pacific Palisades is the second most expensive market in the U.S. with an average property listing price of $1.6 million. Newport Beach took the top spot, with homes averaging nearly $1 million more than the Palisades.

“We’re a micro-market. We’re not affected like many other areas of the country and also of this particular state,” said Marco Rufo of Miramar Coastal Properties. “Fortunately, since January of this year to now, we’ve seen … properties moving. … There has been a decline in value over the year. However, at the current status that we are in, we are faring much better than a lot of Los Angeles.”

According to Rufo, the Palisades has seen an 18 to 22 percent adjustment value. In other words, from 2001 to about 2006 or 2007, property values went up 47 percent. Based on that scale, we’re likely at about the 2003 price range.

“Buyers are getting a fantastic deal. They really are. I mean, homes that were, let’s take 20 percent off a million dollars, you’re talking $200,000,” said Rufo.

The real estate broker said he would recommend the Palisades to everyone. “This is very much a Mayberry in the sense. It is extremely family-oriented, it’s very quaint. The people that do move into the area are looking for that,” said Rufo.

And the Palisades’ fortunate location is a major draw, Rufo explains. “Pacific Palisades has a mixture of being right next to the beach and, at the same time, we’re in the mountains,” Rufo said.

Rufo noted that real estate is a driving force for the economy. More sales usually means more local business and more jobs.