Although buyers remain hesitant, well-priced lots in desirable locations continue to move
The real estate market in Pacific Palisades is undergoing rapid changes in the wake of recent wildfires, with hundreds of fire-damaged land parcels expected to hit the market in the coming months, according to Anthony Marguleas, founder of Amalfi Estates.
In a real estate update shared on April 8, Marguleas reported that over the prior two weeks, an average of 26 burned lots per week — roughly 3.7 per day — have been listed. Since the fires, 160 burned-down parcels have come to market, with 131 currently active, 13 under contract, and 16 sold. Only 18% of the listed lots are currently in escrow or have sold.
“At the current pace, we expect about 110 new burned lots to come on the market every 30 days,” Marguleas stated in an email. “That means over the next 8 to 12 months, we could see as many as 1,300 burned properties listed.” He emphasized that homeowners looking to sell may want to act sooner to preserve equity, as the anticipated flood of new inventory could drive prices down.
Marguleas also noted a marked increase in price reductions. Weekly price drops rose nearly 50% over the past three weeks — from five to 13 — reflecting shifting demand and cautious buyer sentiment. Strategically underpricing lots below market value appears to be the most effective way to generate interest and competition. He pointed to a lot at 654 Jacon that was listed at $999,000 and ultimately sold for $1.65 million after attracting multiple bids.
Although some buyers remain hesitant due to the costs and timeline of rebuilding, well-priced lots in desirable locations continue to move.
Marguleas previously estimated that the rebuilding process for fire-damaged lots could take up to two years. One of the first affected parcels in the Alphabet Streets neighborhood is reportedly nearing permit approval — just 70 days after the fire — signaling the beginning of the long road to reconstruction.
Outside of burned lots, the broader Palisades housing market has seen 57 single-family homes listed since the fires, with 46 still active, seven in escrow, and four sold — most located outside burn zones. Additionally, 15 condominiums have been listed (primarily in the Highlands), with 13 still active. No fire-damaged condos have been listed so far.
In a comparative snapshot, Marguleas highlighted stark differences between Pacific Palisades and Altadena. While the Palisades has seen 160 burned lots come to market, only 18% have gone under contract or sold. In Altadena, 69% of burned lots have either sold or are in escrow — a disparity Marguleas attributes largely to affordability. The average land sale price in Altadena is $664,120, compared to $2.8 million in the Palisades — a 325% price difference.
Despite the challenges, Marguleas said overall property values in Pacific Palisades remain resilient. In February, the median listing home price reached $5.2 million, marking a 6.6% increase from the previous year. Altadena also saw modest appreciation, with average home values rising 3.5% to approximately $1.29 million.
Marguleas concluded that while demand for land in the Palisades remains cautious, buyers are watching closely — balancing pricing, location, and the long road to rebuilding.
