As of this week, the real estate market in Sherman Oaks, CA reflects both stability and subtle changes. The median list price currently stands at $2,772,500, with the Market Action Index (MAI) hovering around 38. This is a slight decrease from last month’s MAI of 41, indicating a small shift in market dynamics. Meanwhile, inventory has decreased to 98 active listings, suggesting limited options for buyers.
Understanding the Market Action Index
The Market Action Index (MAI) answers the key question, “How’s the market?” by comparing the rate of sales against inventory levels. A higher MAI typically suggests a seller’s market, while a lower MAI leans toward a buyer’s market.
- Today’s MAI: 38 (Slight Seller's Advantage)
- Last Month’s MAI: 41
Even though the market is cooling slightly, the Seller’s Advantage persists. We recommend watching for further changes in the MAI. Should it begin to rise, we may see prices increase again. Conversely, if the MAI drops or dips into the buyer’s zone (below 30), we could see downward pressure on home prices.
Real-Time Market Profile
Here’s a snapshot of the real-time key metrics for Sherman Oaks:
- Median List Price: $2,772,500
- Median Price of New Listings: $1,395,000
- Price per Square Foot: $894
- Average Days on Market: 83
- Median Days on Market: 56
- Price Decreased: 48% of listings
- Price Increased: 1% of listings
- Relisted Properties: 23% of listings
- Inventory: 98 homes
- Median Rent: $8,995 per month
Market Narrative: A Cooling Market with Potential Changes
Over the past few months, the Sherman Oaks real estate market has been cooling, with prices remaining relatively steady. Even with the small decline in the Market Action Index, the area remains in a seller’s market. However, there are important factors to watch:
- If the MAI starts to rise again, it will signal increased competition and potentially higher prices.
- If the MAI continues to drop, the market could shift toward buyers, placing downward pressure on prices.
For buyers and sellers, the next few months will be critical in determining whether the market continues to stabilize or begins a more pronounced shift. Keeping a close eye on the MAI will provide essential clues.
Breaking Down Market Segments
To better understand how the Sherman Oaks market is performing, here’s a closer look at the different market segments. Each segment represents approximately 25% of the market, ordered by price.
| Median Price | Square Feet | Lot Size | Beds | Baths | Age | New Listings | Absorbed | Days on Market |
|---|---|---|---|---|---|---|---|---|
| $4,547,500 | 5,061 | 8,000 - 10,000 sqft | 5 | 5.5 | 7 | 1 | 2 | 56 |
| $3,297,000 | 3,816 | 8,000 - 10,000 sqft | 5 | 4.5 | 60 | 0 | 3 | 49 |
| $2,399,000 | 2,977 | 8,000 - 10,000 sqft | 4 | 3 | 68 | 0 | 3 | 77 |
| $1,650,000 | 1,753 | 6,500 - 8,000 sqft | 3 | 2.5 | 76 | 2 | 5 | 35 |
This breakdown highlights the variation in pricing, square footage, and property features across Sherman Oaks. The upper tier of the market, with homes priced around $4.5M, includes larger homes with five or more bedrooms and expansive lots, while the lower tier offers more affordable options with smaller homes.
Conclusion
The Sherman Oaks real estate market continues to show resilience, with a slight seller’s advantage despite cooling trends. The current market conditions may provide opportunities for both buyers and sellers, depending on how the Market Action Index evolves in the coming weeks. Buyers should watch for potential price reductions, while sellers may still have the upper hand in negotiations for now.
Contact Information
For personalized advice and detailed information, contact your local real estate experts at Spitz Chavez Group.
For more information or to explore similar properties, please contact:
- Andrew: (818) 453-9119, [email protected]
- Fran: (818) 517-1411, [email protected]
Market Action Index Graph:
