The reopening of Pacific Coast Highway and ongoing repairs to Temescal Canyon Road are expected to ease access and support rebuilding
Five months after the wildfires, the local real estate market is navigating a complex recovery with a surge in burned lot listings and cautious buyer interest, according to real estate expert Anthony Marguleas of Amalfi Estates.
Since February 2025, 305 land listings have hit the market, with 195 currently active, 29 in escrow, and 55 sold, Marguleas reported. However, new listings continue to outpace sales, though the gap is narrowing, with active listings dropping 23% from April to May, from 97 to 75 new lots. Sellers face significant challenges, with many lots losing 35-40% of their pre-fire equity, except in the Huntington neighborhood, which has retained its value better.
The City of Los Angeles has issued 82 rebuilding permits across 64 addresses as of June 1, with hundreds more under review, signaling progress in the recovery effort.
The reopening of Pacific Coast Highway and ongoing repairs to Temescal Canyon Road, a key thoroughfare used as a debris recycling site for the past five months, are expected to ease access and support rebuilding.
Marguleas estimates that 30% of affected homeowners—roughly 1,800 to 2,000—may choose not to rebuild, potentially flooding the market with lots over the next 20 months. Active inventory could peak at 1,000 lots before shifting from a buyer’s market, he noted, predicting a total of around 1,800 lots based on current trends.
Price reductions are increasing as sellers set overly ambitious asking prices, often based on other active listings rather than sold prices, which Marguleas identifies as the true measure of value. Average sold prices per square foot vary by neighborhood, with factors like location, views, and lot usability significantly impacting value. The Huntington remains a standout, maintaining strong demand with properties like one at 611 Ocampo Drive entering escrow at $4.25 million, only a 10% drop from its pre-fire valuation.
Looking ahead, Marguleas expects permit approvals to continue doubling monthly, boosted by innovations like Archistar’s AI-driven software, which can analyze building plans in days rather than weeks or months.
