According to Redfin, investors were responsible for buying 48 of the 119 lots for sale in the Pacific Palisades area during the third quarter. In nearby Altadena, investors purchased 27 of the 61 lots available, and in Malibu, 19 of the 43 lots for sale were bought by investors.
Redfin’s analysis indicates that many investors made lowball offers for lots in Altadena, where some of the destroyed homes had been built in the 1940s and 1950s. These lots have been selling in the $500,000 to $600,000 range. The report noted that while some owners rejected these offers, others were forced to sell as they lacked the money to rebuild.
By comparison, a typical empty lot sold for $1.6 million in Pacific Palisades, and for $1.3 million in Malibu.