Sherman Oaks Real Estate & Home Price Trends for 2015
In many ways, the Sherman Oaks real estate market reflects trends occurring across the San Fernando Valley, the broader metro area, and the entire state of California. In short, there’s a lot of housing demand but little inventory, and it’s driving home prices north.
Last month, the Southland Regional Association of Realtors (SRAR) reported a major uptick in home sales for the San Fernando Valley. Single-family residential sales rose by about 10% in June 2015, compared to the same time last year. Condo sales, on the other hand, rose by nearly 20% year over year. Home prices are on the rise too, and we’ll get to that in a moment.
There are several factors that account for the increase in real estate activity. Mortgage rates have been hovering in the 4% range for many weeks, and that’s bringing more buyers into the market. Meanwhile, the economy continues to improve and consumer confidence is rising. This puts more people in a position to buy a house.
Home prices in Sherman Oaks and elsewhere across the Valley are still rising, but at a more moderate pace than in the past. This reflects some of the recent real estate predictions for Southern California. Many housing analysts expect home prices to rise more slowly in 2016, compared to the last couple of years. CAR has predicted a continued but gradual increase in home values this year and into 2016.
The Sherman Oaks real estate market could experience some of this “cooling” as well. And perhaps a little cooling is a good thing. We all recall what happened the last time the housing market got overheated (and overly speculative). It led to an industry-wide collapse and a full-scale economic recession. Compared to that, “moderate” growth is a best-case scenario.
SRAR recently reported similar trends for the broader San Fernando Valley. According to their data, the median price for single-family homes in the Valley rose 4.9% in June 2015 compared to the same month last year.
As mentioned earlier, this mirrors trends that are happening at the county and state level. According to the California Association of Realtors (CAR), the median sold price for existing single-family homes in California rose to $489,560 in June 2015. That was an increase of 7% over last year. Los Angeles County saw a 7.6% increase during the same 12-month period. Demand for homes has risen too, as evidenced by the increase in sales over the last year.
All of this is good news for homeowners who are planning to sell in 2015 or 2016. The bottom line is that if you are selling a home in Sherman Oaks, the market is currently in your favor.