The #1 question that I, as a realtor am asked, is how is the local Sherman Oaks housing market. The simple answer is “mixed”.
Some indicators show that foreclosures, shortpays, and other distressed homes for sale are pulling down the value of standard home sales. However, there are other factors such as a very low inventory, short marketing times, and historically low interest rates which point to a sellers market.
In essence it works out to a pretty balanced market. If a good house goes on the market for a reasonable listing price, that house will sell quickly, sometimes in multiple offers and sometimes over asking price. But savvy sellers need to pick the buyer correctly not just based on the highest price. The biggest problem that is plaguing deals during escrow is the dreaded appraisal. With recent changes in law due to the “HVCC” appraisals can be a veritable canyon of problems. More about that later.
The value of homes in the Sherman Oaks, Studio city area seems to be pretty stable over the last year with an almost insignificant average loss. Sales are strong and demand from buyers is healthy.
When listing a home, a seller needs to figure out the correct position for their home in relation to other local homes that are for sale. Likewise, a buyer needs to be working with a knowlegeable agent to help determine the statistically important sales in the local neighborhood to determine a fair price for the home that they are interested in.