A Luxurious, Beautiful – Trailer Park?!?!
Paradise Cove Mobile Home Park in Malibu, California, has transformed from a blue-collar community to a celebrity hotspot. The park boasts 256 trailers and manufactured homes and traces its roots back to the 1950s when the previous owners permitted fishermen to park their campers there. From the early 2000s, celebrities, including Stevie Nicks, Minnie Driver, and Matthew McConaughey, purchased trailers in the park. It’s easy to see why – the park offers stunning ocean views, a private cove, and a close-knit community…at least it did until the influx of celebrities changed the vibe.
The growing number of celebrities in Paradise Cove Mobile Home Park has resulted in losing the small-town vibe for locals. In addition, the demand for trailers has increased due to low inventory and the pandemic, driving up prices, with around 30 trailers selling for up to $5 million in the past three years. This is now considered the most expensive trailer park in the U.S., with rumors of off-market deals reaching up to $7 million. However, potential buyers are hesitant because they don’t own the land beneath their homes and must pay monthly rent on their parcels.
Many of these celebs buy the trailers and then fix them to be lavish L.A.-worthy getaways. For example, locales Ryan Addison and his wife Darlene moved in 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. At first, we were in disbelief. And now I’m just like, ‘Yeah, whatever.’ Just another person with money.”
Story/Image Source: The Wall Street Journal. See the full story here: wsj.com/articles/the-most-expensive-trailer-park-in-America-3199a923
LOCAL MARKET UPDATE
Inventory is on the Rise This Spring, As It Should Be
The Denver real estate market saw a significant increase in active listings in March, up by 103% from the previous year, indicating a potential shift in the market. The increase is noteworthy despite still having only around 4,500 functional properties at the end of the month, which is significantly lower than the 30-year average of about 13,600 listings for this time of year. This suggests that sellers are becoming more comfortable with the current market environment, despite the economic downturn and fluctuating mortgage rates experienced over the past few years.
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 the market increased to 37 days, compared to just 12 days in March 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.
INFO FOR SELLERS
Price It Rights the First Time, Or Lose Money
Setting the right listing price is crucial for sellers in Colorado’s increasingly competitive real estate market. In March, 37% of homes required at least one price reduction to sell, highlighting the importance of pricing your home appropriately. However, this figure improved from November 2022, when 58% of dwellings needed a price cut to sell. This suggests the market is stabilizing, with less downward pricing pressure. Nevertheless, it’s still essential to price your home competitively to succeed in Colorado’s evolving real estate landscape.
INFO FOR BUYERS
More Homes Mean More Opportunities
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 in the 6% range this year, and buyers and sellers are adjusting to the new rate environment. However, it’s not quite “business as usual” like the pre-COVID years. Interestingly, the average discount rate in March was only 0.2%, starkly contrasting with last year’s 6.4% premium. This suggests buyers are getting homes very close to what they are listed for this spring season.
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors or omissions in the content.