You Won’t Believe What $1 Million Buys You in Pacific Palisades – Shocking Real Estate Secrets Revealed!

In the heart of Pacific Palisades, a notable shift is occurring in the real estate market, as highlighted by local expert Anthony Marguleas, the founder of Amalfi. His recent analysis reveals significant trends in lot and house sales, suggesting that the region is entering a recovery phase. Marguleas states, “Land is the clearest leading indicator, and it is already telling us we are in the recovery cycle.”

From February to December 2025, a total of **382 lots** were sold in Pacific Palisades. Currently, there are **147 active lots** and **28 lots in escrow**. Notably, land sales have outpaced new listings in four of the last five months, an encouraging sign for the local market. For those interested in specific lot sales, further details can be found through various local real estate resources.

In a December 30 segment on Fox 11 News, Marguleas elaborated on the dynamics of the Palisades market. He noted that in the Alphabet Streets, land pricing rebounded by **11.7%** from September to December. He emphasized, “This is not a demand problem. Buyers are present. What’s limited is new, viable inventory meeting that demand.” This surge in demand reflects a broader trend in upscale neighborhoods where inventory struggles to keep pace with buyer interest.

Many homeowners, however, remain hesitant to sell. Marguleas attributes this uncertainty to complex insurance issues. He explains that “insurance proceeds are often tied to rebuilding, meaning funds may not fully pay out unless construction begins.” Consequently, many property owners find themselves in a waiting game, seeking clarity regarding insurance timelines, rebuilding costs, and the necessary next steps. In some cases, insurers may delay or reduce payouts until they are confident that a homeowner intends to rebuild, complicating the decision to sell.

The building permit process has seen some improvement, with many permits now achievable within **60 to 70 days**. However, prior to the recent fires that affected the area, obtaining such permits could take as long as six months, and coastal properties often faced an additional six to nine months of waiting. Marguleas noted, “Even with recent slowdowns, today’s process remains materially faster than pre-fire norms.” This shift could make it easier for developers to respond to the ongoing demand.

Surprisingly, the availability of labor is not considered a primary obstacle in the construction process. Instead, Marguleas points out that “the pacing factors remain permitting, insurance coordination, and owner decision-making, not workforce availability.” This distinction highlights a potential area where local homeowners and developers can find solutions to expedite their projects.

As for who is purchasing these lots? Marguleas clarifies that buyers are predominantly local developers rather than foreign investors. “They are the same builders who have been developing homes in the Palisades for the past **20 years**,” he explains. Contrary to media narratives that often suggest outside or speculative capital, the reality is that local operators are continuing their long-standing work within the community. Interestingly, no single developer has acquired more than **nine properties**, and most buyers have purchased only one or two lots.

In summary, the demand for land in Pacific Palisades remains robust, while supply continues to be constrained. With permits progressing and construction beginning, the outlook for the local real estate market is cautiously optimistic. As Marguleas concludes, “Land demand remains intact. Supply is constrained. Permits are progressing. Construction has begun.”

For those following local real estate trends, it's clear that the Pacific Palisades market is navigating a complex landscape filled with opportunities and challenges. Stay tuned for further updates in Marguleas' upcoming reports on the Palisades Pulse.