San Fernando Valley real estate marks record year, says Southland Regional Association of Realtors (SRAR)

Disappearance of multiple offers will equate to more properly-priced homes
  • Rising rents are motivated more potential first-time buyers to eye a condo or townhome purchase.
  • Sherman Oaks, Studio City, Encino and Tarzana seeing an increase in teardowns.
  • The San Fernando Valley enter 2016 with a less than two months of supply.

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The San Fernando Valley real estate industry is coming off a banner year. Existing single-family home prices rose by nearly 7 percent and the volume of closed sales (6,108 homes) reached its highest tally in five years. This year, sales activity is expected to only slightly increase, while appreciation will slow. According to Gina Uzunyan, president of Southland Regional Association of Realtors (SRAR), affordability issues may keep price appreciation in the low single-digit range. Entering 2016, the median resale price of an existing single-family home in the valley stood at $554,208. Since peaking with a 24.1 percent year-over-year increase in 2013, home values have continued to tamper on an annual basis in the region. Uzunyan also expects to see fewer instances of multiple offers on properties, primarily because of home prices. This should lead to fewer agents utilizing the under - or over-pricing marketing strategy and instead properly pricing listings. Home v...