E
ight weeks after the devastating Palisades Fire, the local real estate market is showing signs of recovery. Despite initial concerns over significant devaluation, land values have held firm, according to Anthony Marguleas, founder of Amalfi Estates. Home sales remain stagnant, but only one lot has closed escrow since the fires, and no homes or rental properties have been leased.

    The market has seen an influx of listings, including 18 lease properties, five condos, 22 homes, and 36 land parcels—mostly fire-damaged lots. Six of these land parcels are currently in escrow. Marguleas notes that "we're seeing two to three new land listings coming on per day," a testament to the market's resilience.

    Demand for properties in Pacific Palisades remains high, with Marguleas estimating 10 buyers for every available property. Certain neighborhoods have demonstrated stability, such as the Riviera and Huntington, where one home received six to eight offers and entered escrow at $4.25 million—only a 10% decline from its pre-fire valuation.

    Marguleas predicts that 10-15% of fire-damaged homes will eventually hit the market, but some sellers are setting aggressive prices, reflecting pre-fire or above-market valuations. Gov. Gavin Newsom's executive order prohibits unsolicited low-ball offers in affected areas, aiming to prevent predatory buying practices while residents rebuild.

    The rebuilding process is expected to take five to seven years, based on data from previous California wildfires. Marguleas advises homeowners against selling too soon, citing historical trends that show property values rebounding over time. "Every month you wait, your property value is going to go back up to normal," he said.