I very often have clients who discuss some of the negative media they have heard in the past and then try to apply it to their local market in the San Fernando Valley area. Although it seems as if the negative media has started to flip-flop as far as it being a good time to buy, I wanted to address this issue as it pertains to the eastern San Fernando Valley.
Both national and state trends DO NOT correllate directly with the east San Fernando Valley - which includes Studio City, Toluca Lake, the southern portion of North Hollywood, Sherman Oaks, Encino, Burbank, and a few other surrounding cities.
The important thing to know is that we are one of the very few cities in the nation that have a large presence of the entertainment industry in the form of television studios, film studios, and radio stations.
Hollywood has been the "rock" for our area of Los Angeles for over 70 years. And because there are so many billions of dollars that circulate our area from the entertainment industry, it provides somewhat of a slight buffer to national negative real estate trends. In other words, those that are employed by the entertainment industry want to live and stay close to their place of employment. Namely, the cities I mentioned above. So much so that they are willing to pay the extra dollars to live in those nicer areas of the cities surrounding the studios.
So when you read about negative trends, IT DOES NOT APPLY AS MUCH SO TO THIS AREA OF LOS ANGELES. The entertainment industry billions is what supports the area and holds the value of residential property in the area a little stronger than other areas.
You can witness this financial strength if you look at the statistics of short sales and foreclosures in the area. They are relatively low for the areas of Studio City, Toluca Lake, Sherman Oaks, and southwest Burbank and the Burbank Hills. That is because the disposable income is much higher in those areas and chances are that the amount of equity and financial stability of those homeowners does not allow them to be susceptible to negative economic trends.
So when you see a home in that area, PLEASE don't think you can write 20% below market value and think you're going to get the property!! You're really wasting your time and your agent's time. DO YOUR HOMEWORK!! Look at the comps and offer a fair to slightly aggressive price and you'll get that home. Just keep in mind that ANY home you buy now is a great price!! Keep your eye on the bigger picture and don't get caught up in the cat-and-mouse game of trying to steal something. It won't happen.
Now play nice.......................
