Sherman Oaks Real Estate Market Forecast for 2016
In a previous article, we looked at some of the factors driving the Sherman Oaks real estate market in 2015. To recap: There’s a lot of demand for housing all across the San Fernando Valley right now, but not enough inventory to go around. This is driving home prices north. This momentum will likely continue into 2016.
So that’s where we are right now, as of summer 2015. Looking forward, here’s a forecast for the Sherman Oaks real estate market in 2016.
Sherman Oaks Real Estate Outlook for 2016
Last month, the Los Angeles Times reported that many economists are pleased with the moderation of home prices. “The Southern California housing market, known for its dramatic swings, is settling into a more normal, healthy pattern,” the article said, “and home prices are rising at a more sustainable pace than in the last few years.”
Stuart Gabriel, the director of UCLA’s Ziman Center for Real Estate, said that the Greater Los Angeles real estate market continues to heal.
According to recent reports, the median (midpoint) selling price for homes in Sherman Oaks rose to $762,500 during the three-month period ending in mid-July. That was an increase of 5.2% compared to the same time last year. Over the last five years, sales prices within the Sherman Oaks real estate market rose by a whopping 37%. So if you purchased your home a few years ago, it could be worth significantly more today than when you first bought it.
Thirty-year mortgage rates are currently hovering around 4%, which is where they’ve been for the last few weeks. Freddie Mac, the government-controlled corporation that buys and sells mortgage securities, recently predicted that the 30-year loan rate will rise gradually between now and the end of 2016. According to their latest prediction, the average rate for a 30-year fixed mortgage could rise to around 4.9% by the end of next year. The threat of rising rates could create a stronger sense of urgency among home buyers.
Here’s the bottom line to all of this. The 2016 forecast for the Sherman Oaks housing market is generally positive. Home prices are expected to continue rising but at a more modest pace than last year, which is probably a good thing. Demand will likely remain high due to low mortgage rates, job gains, and other economic improvements. With limited inventory, the Sherman Oaks real estate market currently favors sellers over buyers — and this trend could continue into 2016.
Disclaimers: This article contains third-party data and statistics that are deemed reliable but not guaranteed. It also includes forecasts and predictions relating to the Sherman Oaks real estate market in 2016, as well as the broader Los Angeles and California housing markets. Such statements are the equivalent of an educated guess and should not be viewed as financial advice.